Eoin Hayes (Dublin Bay South, Social Democrats)
Link to this: Individually | In context | Oireachtas source

693. To ask the Minister for Finance the ethical standards and ESG-based risk strategies that are employed by the State’s sovereign wealth funds and the policy of the Government in conducting any reviews of the same. [42968/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Ireland Strategic Investment Fund (ISIF), the Future Ireland Fund (FIF), and the Infrastructure, Climate and Nature Fund (ICNF), are invested by the National Treasury Management Agency (NTMA) according to investment strategies which consider ESG-based risks amongst other factors.

The ISIF Sustainable and Responsible Investment Strategy sets out key information regarding the consideration of responsible investment, integration of ESG and consideration of exclusions by the NTMA in their management of ISIF. This strategy is available on the NTMA’s website here: .

The Future Ireland Fund and Infrastructure, Climate and Nature Fund Act explicitly provides for the assessment of Environmental, Social and Governance (ESG) matters as part of the investment policy and investment strategy for both of the funds. Specifically, it requires the NTMA to take account of ESG matters and the risk they pose to the assets of the funds.

Where an investment is considered to represent an inappropriate level of risk, whether in terms of ESG risk or otherwise, then the NTMA will consider whether or not to make the investment.

The legislation sets out that in the investment policy for each fund, the NTMA is required to have regard to risks posed by ESG matters it considers appropriate as part of investment process. In the investment strategy the NTMA is required to:

• Describe how it takes into account risks posed by ESG matters in its investment decision
• Describes the categories of investment it will not be invested in
• Describe how it determines the basis for determining such categories of investments

The funds’ assets are held for safekeeping by the NTMA’s custodian. Work is ongoing on the long-term strategies for each of these funds, which are expected to be finalised and implemented before year-end.

Reviews of each of the investment strategies are to be carried out on a periodic basis, with a requirement for consultation with both the Minister for Finance and Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation in the case of ISIF, the FIF and ICNF.

These requirements are set out in Section 40 of the National Treasury Management Agency (Amendment) Act 2014 and Sections 7 and 16 of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024.