Norges Bank Investment Management (NBIM) manages the Government Pension Fund Global with a mission to safeguard wealth and achieve the highest possible return for current and future generations. Being a responsible investor is an explicit part of our investment mandate. We have formulated public expectations on key sustainability topics towards companies, which are based on the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

As set out in our expectations on human rights, we expect companies to respect human rights, and to identify and address their salient human rights issues. Labour rights is an essential part of human rights. Companies should respect international labour rights, including those covered in the ILO core conventions and the ILO Declaration on Fundamental Principles and Rights at Work.

Furthermore, we believe companies that invest in their workers and effectively harness the value of their human capital are more likely to be successful over the long term. Our expectations on human capital management state that companies should ensure that workers are paid fair wages that can sustain a decent standard of living, and that they should have a proactive approach to promoting safe and positive working environments.

Engagement is our primary tool for conveying our expectations to companies. By using our leverage as a long-term, minority investor, we can encourage companies to prevent and mitigate adverse impacts they may be causing or contributing to. In addition to company dialogue, we may address adverse impacts or escalate engagement by voting against management or board members.

Moreover, the independent Council on Ethics monitors the portfolio and may make recommendations to exclude companies or place them under observation, if there is an unacceptable risk of breach of the fund’s Ethical Guidelines. These guidelines cover serious and systematic human rights violations.

We have read the information about Taiwanese businesses in Indonesia and take the reports on labour rights violations at Indonesian facilities seriously. Labour rights and working conditions are important topics for us that we often raise in our engagement with companies. We will continue to monitor this situation and consider how we can use the tools at our disposal to address these concerns, in line with our investment mandate and due diligence processes.