Jack Chambers (Dublin West, Fianna Fail)
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91. To ask the Minister for Finance if any investments, either directly or indirectly through pension or other investment funds, are held in tobacco companies by his Department, any agency within the remit of his Department, or any agency or entity in receipt of departmental funding; if his Department has any guidelines on such investment; if his Department intend to introduce any policies or guidelines; and if he will make a statement on the matter. [39031/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the majority of the bodies under the aegis of my Department that they do not hold investments in tobacco companies.

I have been advised by the Central Bank of Ireland that the Bank does not invest directly in any debt(bonds) or equity(shares) issued by tobacco companies, either in the management of the investment reserves or the pension fund.  The Bank has informed me that all external investment managers that manage investment funds for the Bank's pension fund are required to be signatories of the UN Principles for Responsible Investment.  However, this does not preclude the funds from having small exposures to tobacco companies e.g. as part of a passive equity index fund.  An exact exposure would take some time to confirm, but a reasonable preliminary estimate would be less than €1.5million i.e. 0.01%.

I am advised that this is also the case for other funds maintained by the Bank e.g. ICCL, Deposit Guarantee Scheme etc.

The National Treasury Management Agency (NTMA) has advised me that as of 30th September 2016, the Ireland Strategic Investment Fund (ISIF) had equity holdings in three tobacco companies with a value of €1.5m or 0.02% of its total assets. Such investments should be considered in the context of ISIF's broader portfolio and the Fund's commitment to responsible investment. ISIF operates to high international standards and it recently published a Sustainability and Responsible Investment Policy. In relation to investments in tobacco companies through its pension or other investments funds I will write directly to the Deputy in respect of this aspect of the question as the material in respect of the NTMA has not been made available in the time to provide a complete response.

Róisín Shortall (Dublin North West, Social Democrats)
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92. To ask the Minister for Finance his plans regarding the issue of fossil fuel divestment; if this divestment will be included in the Irish Strategic Investment Fund strategy; and if he will make a statement on the matter. [39135/16]

Michael Noonan (Limerick City, Fine Gael)
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I refer the Deputy to my replies to recent Parliamentary Questions on this matter, specifically 29899 and 33974 from Deputy Thomas Pringle, 30222 from Deputy Clare Daly, as well as 31232 from Deputy 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. Based on portfolio holdings as of 30th Sept 2016, ISIF's equity holding in the energy sector amounted to circa. €11m (0.1% of ISIF's assets under management).

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 published its Sustainability and Responsible Investment Policy in July 2016 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.

In that context, ISIF is currently considering the investment case for companies that may not be aligned with the long term transition to a low-carbon economy. ISIF's senior management and the NTMA Board's Investment Committee have committed to reviewing the current Prohibited Securities policy to examine the potential of adding to the list of excluded investment categories.  This process is taking place in parallel with the ISIF Investment Strategy Review and is expected to be completed by end Q1 2017.

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. It also provides that in reviewing its investment strategy ISIF 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 in the near future.