Tommy Broughan (Dublin Bay North, Independent)
Link to this: Individually | In context | Oireachtas source

49. To ask the Minister for Finance if he will report on the review of the Ireland Strategic Investment Fund, which was due to take place in the second half of 2016, in particular with regard to fossil fuel divestment; and if he will make a statement on the matter. [33974/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I refer the Deputy to my replies to recent Parliamentary Questions on this matter, specifically 29899 from Deputy Thomas Pringle, 30222 from Deputy Clare Daly and 31232 from Deputy Roisin Shorthall. I am informed by the Ireland Strategic Investment Fund (ISIF) that its shareholdings with fossil fuel exposure includes certain investments inherited from its predecessor the National Pension Reserve Fund (NPRF).

These shareholdings are in companies based outside Ireland and, as such, are held in ISIF's global portfolio. The global portfolio has been restructured and is being sold over time to fund Irish investment commitments as they arise, in keeping with ISIF's mandate to invest, on a commercial basis to support economic activity and employment, in Ireland. ISIF's total equity holdings in the Energy sector are valued at €11 million (0.14% of ISIF's assets under management). ISIF has also invested in circa. €97 million of short term fixed income investments in energy corporations, representing just over 1% of ISIF's assets.

Such investments should be considered in the context of ISIF's Irish portfolio and its significant commitment to renewables. ISIF's investment strategy is aligned with Government policy and the State's commitment to make the transition to a low carbon, climate resilient and sustainable economy. ISIF recently published its Sustainability and Responsible Investment Policy and this emphasises climate change as part of the integration of Environmental, Social and Governance (ESG) into its investment decision making.

Many major funds internationally have made significant divestments from fossil fuels such as coal, while other such funds have adopted an approach of engagement with energy companies to establish their strategy and positioning for the transition to a low carbon economy.  ISIF continually reviews its carbon exposure and the investment case for companies that may not be aligned with the long term transition to a low-carbon economy.

The National Treasury Management Agency (Amendment) Act 2014, which established ISIF on a statutory basis provides that ISIF 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. I am advised by ISIF that this review will be completed during the 4th quarter of 2016.