The Ethics of Global Investment: Norway’s Government Pension Fund

Abstract

This chapter examines the investment policies of the Norwegian Government Pension Fund-Global (GPF-G). One of the world's largest investors, this sovereign wealth fund (SWF) has an explicit mission to integrate long-term investment policies with a two-sided ethical commitment. The Norwegian fund's ethical mandate is remarkable when compared to other SWFs. However, this mandate is best understood in terms of procedural rather than substantive justice. The chapter argues that the primary reason for the ethical policies within the GPF-G is to secure domestic legitimacy; its ethical impact is of secondary importance. This argument is sustained by reference to recent work on the nature of state authority and legitimacy in democratic societies, the logic of institutional governance, and the functional integration of decision-making. The chapter concludes with implications for situating the functional performance of the fund in the context of changing global financial markets.