Finian McGrath (Dublin North Central, Independent)
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Question 280: To ask the Minister for Foreign Affairs his views regarding Irish public investments in companies that continue to fund and support the Sudanese Government which continues to prosecute crimes against the innocent civilian populace in Darfur. [4243/07]

Dermot Ahern (Louth, Fianna Fail)
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My Department has been approached by the Sudan Divestment Campaign Ireland, which is urging that the National Pensions Reserve Fund (NPRF) should immediately divest from five international companies, whose investments in Sudan the Campaign asserts provide revenue to the Khartoum Government and, in the Campaign's view, thereby contribute to human rights violations.

While responsibility for the NPRF is a matter for my colleague, the Minister for Finance, I understand that the Fund is a founder signatory to the Principles for Responsible Investment launched by former UN Secretary General Annan in New York in April 2006. The aim of the Principles is to integrate consideration of environmental, social and governance issues into investment decision-making and ownership practices and, thereby, improve long-term returns. The Principles reflect the fiduciary duty of investors to their stakeholders as their first responsibility and do not call for screening or avoiding stocks. Instead, they promote a policy of engagement with companies where shareholders regard themselves as long-term owners of companies and raise concerns directly with company management. It is considered that engagement is likely to be more effective than screening in the vast majority of cases where issues arise that relate to particular aspects of a company's behaviour.

The Fund is committed to a process of change that will enable it to implement the Principles and take account of ethical questions in its investment decisions. The actions it is currently taking include the development and implementation of a comprehensive proxy voting policy; development of an engagement capacity with invested companies on environmental, social and governance issues; and refinement of its investment management selection process to include specific consideration of these Principles. Also, noting the issues raised by the Campaign, the Fund has decided to explore opportunities to support and collaborate in initiatives in this area by other signatories to the Principles, in advance of establishing its own engagement capacity.

My colleague Minister of State Conor Lenihan T.D., met with the Sudan Divestment Campaign — Ireland on 9 November 2006 to discuss their concerns. He subsequently met with the National Pension Reserve Fund Commission on 14 December 2006. They said that the Commission had considered the issue of exclusion or screening out of particular stocks or sectors but that any such action would, most likely, not be consistent with its statutory investment mandate, as set out in the National Pensions Reserve Fund Act, of seeking the optimal total financial return subject to prudent risk management.

The National Pension Reserve Fund Commission clearly believes that the issues raised by the Sudan Divestment Campaign Ireland are serious and is giving them due attention. As indicated above, the Fund is making considerable efforts to ensure greater scrutiny and oversight when it comes to these important issues.