World largest Fund, GPF-G, Government Pension Fund- Global, Norway, Divested Israeli's Construction, Maintenance and Communication companies.

 For Starters:

Introduction of GPF-G.

The Government Pension Fund Global (GPFG), also known as the Norwegian Oil Fund, is the world's largest sovereign wealth fund. Here’s a brief introduction along with some key details:

 Overview:

- Established: 1990

- Purpose: To invest surplus revenues from Norway's petroleum sector to benefit current and future generations.

- Management: Operated by Norges Bank Investment Management (NBIM), a part of the Norwegian central bank, under the mandate of the Ministry of Finance.

Key Figures

- Market Value: As of August 2024, the fund's market value is approximately $1.71 trillion.

- Global Reach: The fund holds about 1.5% of all listed shares globally, spread across 8,800 companies in 70 countries.

- Per Capita Value: This translates to over $307,000 per Norwegian citizen.

 Investment Portfolio:

- Equities: 72.0% of the fund's value is invested in equities.

- Fixed Income: 26.1% is allocated to fixed-income securities.

- Real Estate: 1.7% is invested in unlisted real estate.

- Renewable Energy Infrastructure: 0.1% is allocated to unlisted renewable energy infrastructure.

Performance:

- Return: In the first half of 2024, the fund achieved a return of 8.6%, equivalent to 1,478 billion kroner.

- Growth: The fund's market value increased by 1,980 billion kroner during this period.

Ethical Investing:

- Guidelines: The GPFG follows strict ethical guidelines, excluding investments in companies involved in severe environmental damage, human rights violations, and other unethical practices.

- Council on Ethics: Advises on which companies to exclude based on these guidelines.

The GPFG's approach to responsible investing and its significant global presence make it a unique and influential player in the world of finance. 

The Council on Ethics for the Government Pension Fund Global (GPFG) has recommended the exclusion of NINE Israeli companies due to their involvement in activities related to illegal settlements in the Occupied Palestinian Territories (OPT). Here are the details of these companies:

Details of the Israeli companies:

1. Africa Israel Investments:

   - Sector: Real Estate and Construction

   - Reason for Exclusion: Involvement in the construction of settlements in the West Bank.

2. Danya Cebus:

   - Sector: Construction

   - Reason for Exclusion: A subsidiary of Africa Israel Investments, involved in building settlements.

3. Elbit Systems Ltd.:

   - Sector: Defense and Electronics

   - Reason for Exclusion: Providing surveillance equipment for settlements and the separation barrier.

4. Bank Hapoalim:

   - Sector: Banking

   - Reason for Exclusion: Financing construction projects in settlements.

5. Bank Leumi:

   - Sector: Banking

   - Reason for Exclusion: Providing financial services to settlements.

6. First International Bank of Israel:

   - Sector: Banking

   - Reason for Exclusion: Financing settlement activities.

7. Bezeq:

   - Sector: Telecommunications

   - Reason for Exclusion: Providing telecommunication services to settlements.

8. Mizrahi Tefahot Bank:

   - Sector: Banking

   - Reason for Exclusion: Financing construction projects in settlements.

9. Teva Pharmaceutical Industries Ltd.:

   - Sector: Pharmaceuticals

   - Reason for Exclusion: Involvement in settlement activities through subsidiaries.

These companies have been excluded from the GPFG's investment portfolio due to their direct or indirect involvement in activities that violate international law, specifically related to the construction and maintenance of settlements in the OPT.

"Vurdering av risikoen for selskapers medvirkning til normbrudd i konfliktområder"

Assessment of the risk of companies' participation in norm violations in conflict areas. 

Here are the main points from the report by the Council on Ethics regarding the situation in the Occupied Palestinian Territories (OPT):

Main Points.

1. Focus on Violations:

   - The Council on Ethics consistently monitors companies' operations in the OPT due to ongoing violations of international law.

2. Increased Attention During Conflict:

   - When conflict levels rise in the OPT, the Council pays extra attention to companies operating there.

3. Integration with Israel:

   - Israeli settlements in the OPT are often fully integrated with Israel, involving many companies with operations in both Israel and the settlements.

4. Independent Assessments:

   - The Council's assessments are independent of a company's location, focusing on the connection to and seriousness of norm violations.

5. Israeli and Non-Israeli Companies:

   - Both Israeli and non-Israeli companies are assessed, but there is extra attention on Israeli companies due to their higher likelihood of involvement in the OPT.

6. Exclusions Based on Ethical Guidelines:

   - Nine companies have been excluded from the GPFG due to their connections to Israeli settlements in the OPT, based on Article 49 of the Fourth Geneva Convention.

7. Fourth Geneva Convention:

   - The Convention prohibits the occupying power from transferring its own civilian population into the occupied territory. Israel's settlement construction in the OPT is a clear breach of this provision.

8. Types of Companies Excluded:

   - Initially, construction companies building settlements were excluded. Later, companies building road facilities and those owning or renting industrial premises in settlement areas were also excluded.

9. Close Connection to Norm Violations:

   - Exclusion requires a close connection between a company's operations and the underlying norm violations. Mere presence in the occupied area is not sufficient for exclusion.

10. Complexity in OPT:

    - The large number of companies linked to operations in the OPT makes it more complex to assess their complicity in norm violations compared to other conflict areas.

11. Recommendation for Exclusion:

   - The Council will recommend the exclusion of companies with operations in the OPT if their activities align with previously established grounds for exclusion.

12. Threshold for Complicity:

   - There is ongoing debate about whether the Council has set too narrow limits for what constitutes unacceptable complicity in violations of international law. This threshold is discretionary and may change if the severity of norm violations increases.

13. Historical Context:

   - When the Council first assessed companies in 2005-2006, the normative basis and corporate responsibility were less developed than today. The Council continues to monitor developments in the OPT closely.

14. Impact of Gaza Conflict:

   - The war in Gaza, following the Hamas attack on October 7, 2023, has raised new issues related to the OPT. This includes concerns about companies contributing to serious violations of individual rights in conflict situations and those selling weapons used in violation of international law.

15. Relevant Guidelines:

   - Several guidelines are relevant in this context, including:

     - § 4 : Companies contributing to serious violations of individual rights in war or conflict situations.

     - § 4 c: Companies selling weapons to states that use them in violation of international law.

     - § 4 h: Companies involved in gross violations of basic ethical norms.

16. International Law Violations:

   - Both parties in the Gaza conflict have violated international law. The severity and humanitarian impact of the warfare have led the International Court of Justice to consider whether parts of Israel's actions may constitute genocide under the Genocide Convention.

17. Ongoing Monitoring:

   - The Council of Ethics continues to monitor developments closely and will assess whether further companies should be excluded from the GPFG based on their involvement in the OPT.

These points highlight the Council's commitment to ethical investing and its careful consideration of companies' roles in conflict zones.