Norway’s GPFG Divests from Major Israel Real Estate Development Company

According to this press release, “The Ministry of Finance has excluded the company Shikun & Binui Ltd. from the investment universe of the Government Pension Fund Global (GPFG).

The decision to exclude the company follows an exclusion recommendation from the Council on Ethics to the GPFG. The company is a construction company involved in the building of settlements in breach of international humanitarian law in East-Jerusalem.

Council emphasizes that the construction of such settlements on occupied territory represents a violation of the Fourth Geneva Convention, the convention for the protection of civilian persons in time of war. The Convention shall protect civilians in situations of war or occupation. The exclusion is based on an evaluation of the future risk that the company will contribute to serious violations of the rights of individuals in war or conflict. The Ministry of Finance has earlier excluded the companies Africa Israel Investments and Danya Cebus on the basis of similar activities on occupied territory. The divestment from the company has been concluded.

The GPFG owned shares worth some NOK 8.5 million in Shikun & Binui Ltd. on 31.12.2011.

The Ministry’s final decision on whether or not to divest from a company is made on the basis of the Council’s recommendation. The Ministry has not made an independent assessment of every aspect of the the Council’s recommendation but is satisfied that the recommendation document establishes with reasonable certainty that an investment in the company represents an unacceptable risk of violating the Ethical Guidelines.”

Read more: Norway Ministry of Finance

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