Across all fixed income investment mandates consideration must be given to economic, financial, environmental, social and corporate governance (ESG) risk factors.
Criteria for observation and exclusion have been endorsed by the Storting - the Norwegian parliament. These criteria relate to 1) specific product types and entail that the fund must not invest in companies which themselves, or through entities they control, produce weapons that violate fundamental humanitarian principles through their normal use, produce tobacco, or sell weapons or military material to certain countries. 2) if there is an unacceptable risk of conduct that is considered grossly unethical. The Executive Board of Norges Bank decides on observation and exclusion of individual companies, based on a recommendation from the Council on Ethics. Exclusions take place across all asset classes.
NBIM may also choose not to invest in certain companies or groups of companies/sectors. Such divestments take place across asset classes.
NBIM has a green bond portfolio including green bonds issued by supra-nationals,sovereigns, agencies, local authorities and treasuries.
There is a specific process within NBIM where countries are approved ahead of investments, which is implemented across all asset classes.
More information is given in the report on "Responsible Investment 2015": https://www.nbim.no/contentassets/2c3377d07c5a4c4fbd442b345e7cfd67/government-pension-fund-global---responsible-investment-2016.pdf