Identifier
Created
Classification
Origin
10OSLO34
2010-01-22 14:33:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Oslo
Cable title:
NORWAY SMOKES OUT TOBACCO PRODUCERS FROM PENSION FUND
how-toVZCZCXRO5396 PP RUEHIK DE RUEHNY #0034 0221433 ZNR UUUUU ZZH P 221433Z JAN 10 FM AMEMBASSY OSLO TO RUEHC/SECSTATE WASHDC PRIORITY 8125 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
UNCLAS OSLO 000034
STATE FOR EUR/NB, EEB/ESC
SENSITIVE
SIPDIS
TAGS: EINV ENRG EPET ECON NO
SUBJECT: NORWAY SMOKES OUT TOBACCO PRODUCERS FROM PENSION FUND
PORTFOLIO
UNCLAS OSLO 000034
STATE FOR EUR/NB, EEB/ESC
SENSITIVE
SIPDIS
TAGS: EINV ENRG EPET ECON NO
SUBJECT: NORWAY SMOKES OUT TOBACCO PRODUCERS FROM PENSION FUND
PORTFOLIO
1. (SBU) Summary. Seventeen tobacco producers, including seven U.S.
companies, have been excluded from the Norwegian Government Pension
Fund's (GPF) portfolio, on ethical grounds. End Summary.
2. (U) On January 19, The Ministry of Finance announced that 17
tobacco producers had been excluded from the Norwegian Government
Pension Fund's portfolio, and that the sale of the relevant shares
had been completed. Among the 17 companies excluded were the
following seven U.S. producers: Alliance One International Inc.,
Altria Group Inc., Lorillard Inc., Phillip Morris International
Inc., Reynolds American Inc., Universal Corp VA and Vector Group
Ltd.
The Tobacco Criterion - A First Comb-Through
--------------
3. (SBU) GPF investments are regulated by a set of ethical
guidelines, introduced in 2004, that bar investment in companies
involved in particularly unethical behavior, including weapons
production, human rights violations, and environmental degradation.
Last year, the Ministry of Finance proposed to have tobacco added as
a screening criterion, and the motion was supported and passed by
Parliament. The portfolio of approximately 8,000 companies has since
been filtered, and shares in 17 tobacco giants have been divested.
However, the GPF's Council on Ethics has signaled that more may
follow, as the exclusion criterion covers all companies involved in
tobacco production, not considering the percentage of business
represented by tobacco production. The production of associated
products like filters or flavoring is not covered.
Status - U.S. Companies
--------------
4. (SBU) In total, 51 companies have been excluded from the GPF
portfolio since 2004; three have since been re-included. At present,
the U.S. tops the list with 21 excluded companies, accounting for
2/5 of the list. Of these, 11 have been excluded for nuclear weapons
and cluster bomb production, 2 for human rights violations, 1 for
environmental degradation, and 7 for tobacco production.
5. (SBU) COMMENT: The tobacco divestment was expected, as a natural
follow-up to last year's inclusion of tobacco production as an
additional screening criterion. Unlike some previous divestment
decisions, the tobacco decisions appear to be uncontroversial,
consistent and transparent. END COMMENT
WHITE
STATE FOR EUR/NB, EEB/ESC
SENSITIVE
SIPDIS
TAGS: EINV ENRG EPET ECON NO
SUBJECT: NORWAY SMOKES OUT TOBACCO PRODUCERS FROM PENSION FUND
PORTFOLIO
1. (SBU) Summary. Seventeen tobacco producers, including seven U.S.
companies, have been excluded from the Norwegian Government Pension
Fund's (GPF) portfolio, on ethical grounds. End Summary.
2. (U) On January 19, The Ministry of Finance announced that 17
tobacco producers had been excluded from the Norwegian Government
Pension Fund's portfolio, and that the sale of the relevant shares
had been completed. Among the 17 companies excluded were the
following seven U.S. producers: Alliance One International Inc.,
Altria Group Inc., Lorillard Inc., Phillip Morris International
Inc., Reynolds American Inc., Universal Corp VA and Vector Group
Ltd.
The Tobacco Criterion - A First Comb-Through
--------------
3. (SBU) GPF investments are regulated by a set of ethical
guidelines, introduced in 2004, that bar investment in companies
involved in particularly unethical behavior, including weapons
production, human rights violations, and environmental degradation.
Last year, the Ministry of Finance proposed to have tobacco added as
a screening criterion, and the motion was supported and passed by
Parliament. The portfolio of approximately 8,000 companies has since
been filtered, and shares in 17 tobacco giants have been divested.
However, the GPF's Council on Ethics has signaled that more may
follow, as the exclusion criterion covers all companies involved in
tobacco production, not considering the percentage of business
represented by tobacco production. The production of associated
products like filters or flavoring is not covered.
Status - U.S. Companies
--------------
4. (SBU) In total, 51 companies have been excluded from the GPF
portfolio since 2004; three have since been re-included. At present,
the U.S. tops the list with 21 excluded companies, accounting for
2/5 of the list. Of these, 11 have been excluded for nuclear weapons
and cluster bomb production, 2 for human rights violations, 1 for
environmental degradation, and 7 for tobacco production.
5. (SBU) COMMENT: The tobacco divestment was expected, as a natural
follow-up to last year's inclusion of tobacco production as an
additional screening criterion. Unlike some previous divestment
decisions, the tobacco decisions appear to be uncontroversial,
consistent and transparent. END COMMENT
WHITE