Ruth Coppinger (Dublin West, Anti-Austerity Alliance)
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73. To ask the Minister for Finance to review the investment of the strategic investment fund in fossil fuels and other industries that have a harmful impact on climate change and the environment; and if he will make a statement on the matter. [12298/16]

Michael Noonan (Limerick City, Fine Gael)
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The first investment strategy of the Ireland Strategic Investment Fund (the Fund) was published in July 2015. The strategy states that "energy (allocation) will include a significant element of renewables investment". The Fund also commits to operating to high international standards, investing in line with both the Principles for Responsible Investment (PRI), which focus on the management of environmental, social and governance factors to improve sustainability of investment returns, and the Santiago Principles, which are the globally accepted best practice principles for sovereign investment funds such as ISIF.

The Fund's current investment holdings in fossil fuel companies are among the legacy global investments from its predecessor the National Pensions Reserve Fund (NPRF). These are being gradually sold over a period of years to finance investments in Ireland, as they materialise. To date, any exclusions from the Fund on the basis of ethical considerations are those mandated by legislation. In this regard the only relevant legislation impacting on the Fund's investments is the Cluster Munitions and Anti-Personnel Mines Act 2008.

The ISIF has a close working relationship with the Department of Communications, Climate Change & Natural Resources and I am informed by the NTMA that it will continue to seek out further investments for the Fund that are consistent with its mandate and are aligned with national decarbonisation and energy security objectives and with broader energy Government policy.

The National Treasury Management Agency (Amendment) Act 2014 which established the ISIF on a statutory basis provides that the Fund shall review its investment strategy after 18 months of operation and that in reviewing its investment strategy shall consult with the Minister for Finance and the Minister for Public Expenditure and Reform, and that the Minister for Finance may consult with other Government Ministers, as appropriate. This review will be conducted in the second half of 2016 and, as this is not for some time yet, the exact details have yet to be considered fully.