Decision on exclusion reversed

On the basis of the Council on Ethics’ recommendation, the Ministry of Finance has decided to reverse its previous decision to exclude United Technologies Corp. from the investment universe of the Government Pension Fund Global (GPFG). The reason for revoking the previous decision is that the company no longer is involved in the activities that formed the basis for its exclusion.

United Technologies Corp. was excluded in January 2006 on the grounds that the company was involved in the manufacture of nuclear weapons. Nuclear weapons fall within the category of weapons that the GPFG is not allowed to invest in, according to the Ethical Guidelines for the Fund, i.e. weapons that violate fundamental humanitarian principles through their normal use.

The company United Technologies Corp. was recommended for exclusion from the Fund because of the company’s involvement in upgrades and testing of engines for the US’ MX ICBM system. Following disarmament of the US nuclear arsenal, this weapons system has been dismantled and upgrades of the system no longer take place.

Against this background, the Council on Ethics recommends that United Technologies Corp. no longer be excluded from the investment universe of the GPFG. The Ministry of Finance has decided to follow the Council on Ethics’ recommendation.

Source: Ministry of Finance

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