Sovereign Wealth Funds (“SWFs”) are state-owned investment funds that are growing both in size and market importance. In 2008, executives of 26 SWFs came together in Chile and published certain Generally Accepted Principles and Practices (“GAPPs”), or Santiago Principles, to constitute a voluntary framework of investment practices, governance and accountability. Twelve years later, the Santiago Principles, now managed by the International Forum of SWFs (“IFSWF”) and adhered by 38 members, continue to be the only major reference for best practices in the industry.
But is that enough?
Diego López of Global SWF, in collaboration with JUST Capital’s research team, decided to use a new approach for examining the best practices of sovereign wealth funds – the JUST methodology.
In particular, he focused on Norway’s government pension fund NBIM, one of the only SWFs that discloses every American company they invest in, making it a perfect match for comparing to our Ranking of America’s Most JUST companies.
The results? The NBIM invests heavily in certain stakeholder groups, environment and workers especially, but less in others.