After 11 years in the Ethics Council, Cecilie Hellestveit is retiring. She believes that Norway is now sending out a new signal to all the world’s financial markets.
The short version
Table of Contents
- Cecilie Hellestveit resigns from the ethics council for the Oil Fund following new rules for the ethics council.
- She believes the new rules weaken the fund’s ethical leeway.
- The Labor Party and the Storting have adopted a temporary pause in the Ethics Council’s ability to recommend exclusions.
The summary is made by the AI tool ChatGPT and quality assured by E24’s journalists
– With this, we have in principle told all the world’s financial markets that the ethical management of this large state-owned fund will no longer work, says Cecilie Hellestveit to E24.
She adds:
– The rationale is to protect the fund’s investments in technology companies.
Withdraws
On Monday, Hellestveit was in a meeting with the Ministry of Finance. There, the new rules for the Ethics Council were presented and details about this clarified for the council’s members.
After the meeting, she decided to resign as a member of the council.
– I have agreed three times to sit on an independent council. The ethical council, which we have had for the past 20 years, is now closed, she says.
Also read
Florida threatens to put the Oil Fund on the “anti-Israel” list
New regulations
Following an initiative from the Labor Party, the majority in the Storting has decided that a new set of ethical regulations will be drawn up for the Oil Fund.
Finance Minister Jens Stoltenberg has, among other things, feared that large tech companies such as Alphabet, Amazon or Microsoft could be banned from the fund.
The Storting has decided to pause the Ethics Council’s ability to recommend exclusions while a committee considers the ethical rules.
In the meantime, Norges Bank and the Oil Fund were imposed new and temporary ethical rules.
The oil fund can still make so-called “risk-based sales” on its own, but these are financial decisions. Ethical sales have so far been approved by Norges Bank’s executive board, following advice from the Ethics Council.
– Will have consequences
– The work the council will do in the future may lead to the exercise of ownership, but it should not lead to companies being excluded from the fund or put under observation. The only advice I can recommend is to take already excluded companies back into the fund, says Hellestveit.
She adds:
– This sends a signal which I believe will have consequences for the ethical scope of the Oil Fund.
Also read
Senate leader lashed out at Norway: The oil fund’s Caterpillar exit could weaken US ties
Hellestveit explains that the ethical guidelines are usually brought up for discussion approximately every five years.
– This time they have chosen to close down the independent council. It is a decision the owner of the fund (Ministry of Finance jour. amn.) has taken based on considerations that are somewhat unclear to me, she says.
The leader continues
Svein Richard Brandtzæg told VG on Monday that he will continue as head of the Ethics Council:
– We will continue to contribute to the ethical management of the Oil Fund. But we will work in a different way when the Ethics Council will no longer make recommendations on exclusions.
– The decision has created a difficult situation for the Ethics Council. But I am determined that we shall work out a manageable division of labor with the bank, he said.
