Norway's Government Pension Fund - Global has excluded an Israeli company from its portfolio, on the basis of the Council on Ethic's recommendation.

The Council found that Elbit Systems Ltd, a supplier of surveillance equipment, provides products to the Israeli authorities, and is one of the main components in the separation barrier and its associated control regime. The Council of Ethics ruled that investment in Elbit constitutes 'an unacceptable risk of contribution to serious violations of fundamental ethical norms as a result of the company's integral involvement in Israel's construction of a separation barrier on occupied territory'.

Kristin Halvorsen, Minister of Finance, said: "We do not wish to fund companies that so directly contribute to violations of international humanitarian law."

The decision was made by the Council of Ethics on the grounds of an advisory opinion from the International Court of Justice in The Hague, dating from 2004, which states that the construction of the separation barrier and its associated control regime along the chosen route should be regarded as in contravention of international law.

"The freedom of movement of the people living in the occupied territory has been unacceptably restricted. The International Court of Justice has pointed out the obligation of all State parties to the Fourth Geneva Convention to prevent breaches of the Convention such as the construction of the barrier. Norwegian authorities act in accordance with this," added Halvorsen.

However, the Government Pension Fund - Global has reinstated two companies to its portfolio.
The Ministry of Finance decided to reverse decision to include Thales SA and DRD Gold Limited from its investment portfolio in 2005 and 2007 respectively. Thales SA was excluded as the company was involved in the manufacture of cluster munitions, which the Council of Ethic's guidelines prohibit. DRD Gold Limited was excluded on the grounds of severe environmental damages, arising from the fact that one of its subsidiaries was involved in gold mining in Papua New Guinea. Waste from the mine was deposited into a natural river system.

The Council on Ethics found that the grounds for exclusion are no longer valid, and the Ministry of Finance has followed the recommendation of reinstatement.

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