Norway’s Government Pension Fund Global, one of the world’s largest wealth sovereign funds, now expects companies to follow animal welfare guidelines.
Norway’s wealth fund introduces expectations for animal welfare. From now on, the wealth fund expects all companies it invests in to take into account international guidelines for animal welfare.
– A major breakthrough, says Head of Communications Live Kleveland at the Norwegian Animal Protection Alliance.
The Government Pension Fund Global, also known as the «Norwegian Oil Fund», is managed by the central bank of Norway (Norges Bank Investment Management). It is one of the world’s largest funds. The fund was set up after Norway discovered oil in the North Sea and serves as a financial reserve for the country.
Norges Bank Investment Management, About the fund
Animal welfare in line with the World Animal Health Organisation
– We regularly update our expectations of companies related to sustainability and corporate governance, and we have recently included animal welfare in the expectations of consumer interests. This reflects developments in international standards and regulatory changes, and we believe that companies should include respect for animal welfare in their guidelines and systems, in line with what is described in the World Organisation for Animal Health’s Terrestial Code, says Head of the Social Team in the Ownership Department, Caroline Eriksen at the Central Bank Investment Management.
As one of the world’s largest investors in the international food industry, the Norwegian wealth fund has significant influence. Their investment strategy is to own small stakes in a large number of companies. This means that they regularly engage with food companies and vote at general assemblies around the world. Because the Norwegian wealth fund is so large, investment companies from countries all over the world keep an eye on their policies.
– We have worked for years for the sovereign wealth fund to acknowledge animal welfare as a relevant consideration. An expectation like this is an important first step, Kleveland says.
Introduce expectations for animal welfare around the globe
– As an owner in almost 9,000 companies around the world, active ownership is important to support long-term returns and reduce risks associated with investments. Our expectations are directed at the companies’ boards and form the basis for the ownership dialogue. We will now address animal welfare in this dialogue where it is relevant to the companies’ operations and risk exposure. As a minority shareholder with a long-term perspective, we want to influence companies over time, Eriksen says.
The Central Bank Investment Management states the following in regard to animal welfare:
Norges Bank Investment Management, Consumer interests
«To prevent and reduce foreseeable negative consequences of use, abuse and overuse, companies should: […] Integrate respect for animal welfare standards, such as those in the World Organization for Animal Health (WOAH) Terrestrial Code, into their policies and practices.»
The Norwegian Animal Protection Alliance commends the Central Bank Investment Management for following the OECD’s recommendations from 2023, which state that all companies should map animal welfare in their value chain and set requirements that are in line with the guidelines of the World Organisation for Animal Health.
– We encourage the Norwegian wealth fund to develop even more specific expectations for animal welfare in the near future. The Norwegian Animal Protection Alliance looks forward to contributing our expertise to drive further progress, Kleveland says.
In 2021 the Norwegian Parliament recognized animal welfare as relevant to the wealth fund.
