Thomas Pringle (Donegal, Independent)
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58. To ask the Minister for Finance the legislative and other measures necessary to divest all remaining Ireland Strategic Investment Fund investments in the fossil fuel industry; the prohibition of any future investments in the fossil fuel industry in Ireland or internationally and the adoption of a 100% renewable energy investment policy for the fund; and if he will make a statement on the matter. [11079/16]

Michael Noonan (Limerick City, Fine Gael)
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The Ireland Strategic Investment Fund's (ISIF) investment holdings in fossil fuel companies are among the legacy global investments inherited from its predecessor fund, the National Pensions Reserve Fund (NPRF).  In keeping with the ISIF's mandate to hold or invest its assets (other than directed investments) on a commercial basis in a manner designed to support economic activity and employment in Ireland, these legacy investments are being sold by ISIF over time to fund Irish investment commitments as they arise.

I am informed that the Fund has reduced its overall equity exposure from approximately 25% at end 2014 to approximately 11% at end 2015. Furthermore, this allocation is expected to be continuously reduced as the Fund deploys its capital. The Fund's divestment approach is phased with a view to protecting the taxpayer from unnecessary losses. This is in alignment with the Fund's double bottom line mandate of investment (i) on a commercial basis and (ii) in a manner designed to support economic activity and employment in Ireland.

The first investment strategy of the Ireland Strategic Investment Fund, which was published in July 2015, is publicly available.  It sets out the long-term strategic direction for the Fund, and outlines that the "Energy (allocation) will include a significant element of renewable energy investments". Importantly, the Fund commits to operating to the highest global standards, investing in line with both the Principles for Responsible Investment (PRI), of which it is a signatory, incorporating environmental, social and governance factors into its investment decision making, and the Santiago Principles, which are the globally accepted best practice principles for sovereign funds. To date, any exclusions from the Fund (e.g. on the basis of ethical investment criteria) are those mandated by legislation, such as the Cluster Munitions and Anti-Personnel Mines Act 2008 (as amended).

The ISIF has a close working relationship with what is now the Department of Communications, Climate Change & Natural Resources and is committed to investing in the energy sector in a manner that is consistent with the Government's commitment to make the transition to a low carbon, climate resilient and sustainable economy, as reflected in the Climate Change and Low Carbon Development Act 2015 and in the Paris Agreement, signed recently by Minister for the Environment, Community and Local Government on Ireland's behalf.

The Fund's investment policy is set out in the National Treasury Management Agency (Amendment) Act 2014, and its strategy is determined, monitored and kept under review in accordance with that Act.