Norway's $200 bn oil/pension fund bans Wal-Mart

[MichaelHennigan]

In a significant development, the Norwegian Ministry of Finance today announced that it has excluded the US retail giant Wal-Mart Stores Inc., Wal-Mart de Mexico and mining group Freeport McMoRan Copper and Gold Inc. from the Norwegian Government Pension Fund in line with recommendations from the Council on Ethics for the Fund.

The recommendation to exclude the world's biggest retailer Wal-Mart cites serious/systematic violations of human rights and labour rights. The recommendation to exclude Freeport is based on serious environmental damage.

The Council on Ethics finds that the environmental damage caused by Freeport's mining operations is extensive, long-term and irreversible.

The fund is valued at almost $200 billion.

Details

[hiker]

Its an interesting story all right. Is this the begining of cultural capitalism?

I read another story recently about Allianze, the insurance group. They have released a new product aimed solely at the Islamic market. It is based on Sharia Law which forbids the charging of interest.

Interesting days indeed when capitalism is tinged with various cultural overtones.

[commentator]

In a significant development, the Norwegian Ministry of Finance today announced that it has excluded the US retail giant Wal-Mart Stores Inc., Wal-Mart de Mexico and mining group Freeport McMoRan Copper and Gold Inc. from the Norwegian Government Pension Fund in line with recommendations from the Council on Ethics for the Fund.

The recommendation to exclude the world's biggest retailer Wal-Mart cites serious/systematic violations of human rights and labour rights. The recommendation to exclude Freeport is based on serious environmental damage.

The Council on Ethics finds that the environmental damage caused by Freeport's mining operations is extensive, long-term and irreversible.

The fund is valued at almost $200 billion.

Details

You have to love the scandos for the sheer cheek and irony free self regard they possess. Norway, a huge exporter of greenhouse gas producing Oil gets all self righteous about freeport for what are undoubtedly breaches of environmental ethics and won't invest while they engage in social engineering on a massive scale in one of the highest taxed nations on earth spending oil revenue. Rich.

[david]

Whether we're hypocrites or not - and we're one of the highest consumers of oil in the world, commentator - ethical consumerism helps drive fair trade, local produce, organics and so on. It is to be encouraged.

Any highlighting of malpractice in capitalism is to be lauded. Fair play to the Norwegians.

Here's an example: when I complained to RNLA (the lifeboats) about their investments in companies in the arms industries, I was told that ethical considerations came a good way behind monetary returns on their capital. I replied that the blatent two-faced practice of 'saving lives at sea' using money raised through industry designed to kill people was completely unacceptable, I would never support them again and I would make sure people knew about their double-dealings.

I wish I could request back the thousands I had personally raised for them over the years to put into more ethical bodies. The value of information...people spend their money and haven't a clue who's hands it ends up in or to what use it is put.

How I long for a 'council of ethics' in Ireland!

[hiker]

How I long for a 'council of ethics' in Ireland!

Now there's an interesting idea. I'm a big fan of the fair trade labels but surely the real politik of world trade prevents what the Norwegians have done from happening too often.

I mean, what we in Ireland regard as ethical might be considered unethical or at possable unimportant at all to the Chinese, or Vietnamese or Fijian.

So do we apply Irish Ethics to world trade or maybe world ethics to Irish trade?

See, I'm fking confusticated already.

[david]

How I long for a 'council of ethics' in Ireland!

Now there's an interesting idea. I'm a big fan of the fair trade labels but surely the real politik of world trade prevents what the Norwegians have done from happening too often.

I mean, what we in Ireland regard as ethical might be considered unethical or at possable unimportant at all to the Chinese, or Vietnamese or Fijian.

So do we apply Irish Ethics to world trade or maybe world ethics to Irish trade?

See, I'm fking confusticated already. :?

I know what you mean.

I suppose you start from 'human ethics'...

I subscribe to an English magazine, Ethical Consumer which guides a lot of purchasing decisions and is a mine of information. It comes out bi-monthly which really is not often enough for me as the corporate world changes so fast. Along with the web, it is absolutely essential before parting with any amount of money.

For instance, although recent big ethical news was that L'Oreal (quarter owned by Nestlé) just purchased the Body Shop, it's the smaller, more inherently ethical companies I like to support, but they're being swallowed up faster than ever.

Examples are Green and Blacks, who made some of the most delicious chocolate in the world, being bought by Cadbury's; Linda McCartney's (although the ethics of this company were questionable before) is now being predated by Nestlé; Tom's of Maine has been swallowed by Colgate Palmolive; Danone, who have labour relations trouble, bought up Stoneyfield Farm; Philip Morris took over Back to Nature; Ecover have been in bed with Group 4 Security for years; Mars own Seeds of Change; RealEat are, IIRC, Archer Daniels Midland; Meridian is up for grabs; Granose is a no-no and so on and on as MNCs daily crush the entrepreneur.

Then of course if you buy Hotpoint, Mitsubishi, Siemens and a list of companies as long as your leg you're helping kill people by their involvement in the arms industries. And what about donations to political parties? Should you give money to companies who do this?

Anyways, the real point is education: being aware of where your hard-earned is going. 99% of the population don't know and don't care.

This is why I say the Norwegians should be applauded for what they're doing, it's a rare and bold and welcome move.

[MichaelHennigan]

Our pensions reserve fund for civil servant pensions is now worth about €16 billion.

It's taxpayers money and a board appointed by the Minister for Finance sets policy. I would guess that issues like fair trade wouldn't be high on their agenda.

Wal-Mart has been trying to clean up its image in recent times and it's banned from some municipalities in the US.

[Pax]

Ethical Consumerism is not a complete answer, as mentioned by others, its not really popular, so its effect is diffuse, and its those that have money that control the effect (a plutocratic as opposed to a democratic system) but it can create an example and when the example is as large as what the Norwegians are doing then even more so.

But AFAIK even the UK has a law whereby pensions have to have an ethical accreditation/information made available to the consumer - nothing of the kind exists here....

[david]

Ethical Consumerism is not a complete answer,

Indeed. But it's one of the few answers the ordinary person on the street has; it's down to education - Ireland is a late starter. But we're rich! We should be able to make a huge difference! Oh, I forgot, there's only how many of us?

it can create an example and when the example is as large as what the Norwegians are doing then even more so.

More power to their elbows. So long as they don't keep it up their sleeve...

But AFAIK even the UK has a law whereby pensions have to have an ethical accreditation/information made available to the consumer - nothing of the kind exists here....

This is true for us. Try finding an 'ethical' pension or indeed any 'ethical' financial service in this country. It is despairingly difficult.

[david]

Coincidentally enough, Johann Hari has just posted a not-a-squidjillion-kilometres-away-in-relevance article.