Michael D Higgins (Galway West, Labour)
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Question 533: To ask the Minister for Finance his views on the strategy, such as that practised by Norway, regarding ethical investment of State-sourced funds; and the way this impinges on the operation of the National Pensions Reserve Fund. [29657/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced, during the debate on the Investment of the National Pensions Reserve Fund and Miscellaneous Provisions Act 2009 last March, that the preparation of the draft legislation provided an opportunity to consider once again the position regarding ethical investment of the National Pensions Reserve Fund (NPRF) and that I would establish an Interdepartmental Committee to examine the issues further and to report to me. The Committee included representatives of the Ministers for the Environment, Heritage and Local Government, Enterprise, Trade and Employment and Foreign Affairs, as well as officials from my Department and representatives of the National Treasury Management Agency as Manager of the NPRF.

In its work, the Committee has considered the appropriateness and possible nature of an ethical investment policy for the NPRF. The approaches to ethical/responsible investment taken in other countries, including Norway, have been reviewed, and submissions from a number of civil society organisations have also been considered. The Deputy will also be aware that the NPRF was a founding signatory in April 2006 to the UN-sponsored Principles for Responsible Investment which seek to integrate environmental, social and governance issues, in addition to financial issues, into investment analysis and decision-making.

The report of the Committee has been submitted to me and I expect to bring proposals to Government shortly.