Law at the End of the Day: Environmental Harm, Nuclear Weapons, and North Korean Labor: Links to Early 2018 Actions of the Norway Pension Fund Global

Though this report comes very late, I thought it useful to include at least a nod in the direction of the batch of actions taken by the Pension Fund Global at the beginning of the year. An assessment fo its recently distributed annual report will come in a later post.

The Secretariat of the Council on Ethics, Government Pension Fund Global, has recently published on line a set of decisions made by the Norges Bank upon the recommendation of the Council of Ethics, as well as posting a few Council of Ethics recommendations that have not yet produced action on the part of the Norges Bank.

Several of the decisions are consistent with past policies. These include the companies excluded because of their involvement in the production of nuclear weapons. More interesting are the sustainability decisions. Companies have been excluded which have been found to have engaged in the practice of "beaching" (disposal of decommissioned vessels by sending them to be broken up for scrap on the beaches of Bangladesh and Pakistan). This signals the continuing expansion of the Pension Fund's sustainability objectives and its willingness to begin to sketch out more comprehensively those behaviors which are deemed to fall outside of what it will accept as good practice.But also interesting was the willingness to use observation rather than exclusion for the company (Pam Ocean) which provided "assurance that it is willing in future to take the method of breakup into account as far as possible when making decisions on the sale of vessels for scrapping." (here)

Most interesting of all was the exclusion of Atal SA, a Polish company, for its use of North Korean labor (Council’s recommendation here). Beyond the North Korean aspect (with its presumptions of forced labor) is the continued development of notions of supply chain responsibility in investment. "The Council on Ethics considers that Atal has a responsibility for all the workers at its building sites, even though it is a subcontractor that is the direct contracting party with the North Korean staffing company which is the North Koreans’ employer." (here). The implications for Cuba and other states who use their labor to generate cash ought not to be dismissed, though politics may play a large role in the different treatment of the two states (and the determination fo where to draw the line between forced labor and enthusiastic participation in national aspirations).

More below, with links.

In accordance with recommendations made by the Council on Ethics, Norges Bank has made public its decision to exclude these companies because of their involvement in the production of nuclear weapons: AECOM; BAE Systems Plc.; Fluor Corp; and Huntington Ingalls Industries Inc.

Also, Norges Bank has upheld the exclusion of Honeywell International Inc.

The Council on Ethics has recommended the exclusion of companies that have disposed of decommissioned vessels by sending them to be broken up for scrap on the beaches of Bangladesh and Pakistan, a practice known as beaching, where working conditions are extremely poor. The process also causes severe environmental damage. The Council considers that by disposing of ships for scrapping in this way, the company can be said to contribute to serious human rights violations and severe environmental damage. The excluded companies include: Evergreen Marine Corp (Taiwan) Ltd; Korea Line Corp; Precious Shipping PCL; and Thoresen Thai Agencies PCL. One company, Pan Ocean Co Ltd was placed under observation.

The Council on Ethics has recommended the exclusion of one company for its use of North Korean labour at its construction sites. Norges Bank has made public its decision to exclude the following company: Atal SA

Law at the End of the Day

Saturday, April 21, 2018

Environmental Harm, Nuclear Weapons, and North Korean Labor: Links to Early 2018 Actions of the Norway Pension Fund Global

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