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some cases does not have a positive “For me it’s truly For me it’s truly an honor to serve on
effect on their share price. Some the Council, and I do not think that
companies will find it harder to talk an honor to serve on anybody says no to do so.
with their banks, more difficult to
recruit, so most companies are eager Q: Do you think that business should
to remain in the Fund. Therefore, the Council, and I do pay more attention to human rights?
we often engage in a dialogue with Well, I think that all countries
the companies. It is perhaps not not think that have signed the United Nations
our main mandate, but it turns out guiding principles, and they put
to be the most effective part of our anybody says no expectations on all countries actually
work because many companies are to pay attention, follow the law and be
willing to change their conduct on to do so.” active. Yes, human rights are a core
the ground. This can involve things fundamental of everything, from the
such as changing their people on the board, in management, law to compliance, actually the common sense of running a
changes in policies, withdrawing from certain countries or value-based business. So, yes, I think it’s a core matter and a
business areas or even divesting themselves of subsidiaries. license to operate.
Many companies will take real measures. Of course, there It is also a license to make a difference, if you want to do so.
are sometimes people who do not, and then of course the Many companies would like to do that beyond the sort of
consequences follow. financial return type of positions.

Q: The Sovereign Fund has tremendous power. Do you, Q: We have seen several financial crises, and we still see the
sometimes, perhaps in the line with the Government, social impact of the 2009 crisis. Do you feel that people care
propose to invest in some companies? more about human rights now than before or is it only a
We are mandated only to do negative screening, meaning we Scandinavian concern?
only look at companies that are already in the Fund. Of course, We are here in the United Nations, and this is a global issue,
there are some people who would like us actually to do due and it’s more serious in countries where norms have been
diligence prior to the company going into the Fund. However, violated on a large scale, whether it’s replacement of people
that is the responsibility of the Fund itself. The Fund is so big, or sexual harassment. So, of course, there are systematic
it is very dependent on following the index, whatever index violations that are more prevalent in other parts of the world
they have been given by the Ministry of Finance. They can than in the Nordic countries, but the Fund is global, and
on their own initiative do risk-based sale. There is in some the Fund must strive to adhere to the expectations of the
cases, when they do not like the business model, for instance, international community. I think that to some extent the
if they see a risk of corruption. They will not say this pubicly, financial crisis heightened expectations, especially from the
but they will quietly divest. So the responsible management is financial community, to be more diligent, more responsible.
not only by the Council of Ethics but also in the first instance
by the Fund itself. Q: If you have a message to our readers, what would that
be?
Q: How much time do you spend working on these issues? I think all countries need a piggy bank, a set of financial
Of course, it varies, but I would think in general plus or institutions, either governmental or other, and safeguards
minus a day per week. Sometimes a little less, of course. Now for their citizens. Such institutions are a very good way of
I’m here for two days. exercising influence on a global scale. Most of these funds,
whether sovereign funds or pensions funds, by necessity,
Q: You are a very famous investor and businessman, and make investments. It is important to set widely recognized
I presume that you have more than enough on your plate. standards and guidelines for such funds and to meet
Why did you accept to be a member of this Council? expectations beyond those that they have perhaps signed
It is really a huge privilege to be able to engage intellectually on to for themselves and are just trying to live up to. Set the
with a super group of people in both the council and bar high and strive to achieve those high standards. Try to
secretariat in order to effectuate the mandate and make a be among the better funds. I think that is also something
difference. I get to influence very large companies and raise that diplomats and others can underscore – the role here
the flag. People actually listen, they change, and that’s a huge of human rights and business. There are plenty of business
opportunity to be a part of. I did not know much about it people here, and they are eager to talk to diplomats, to
before I joined. The companies we invest in are mostly private human rights activists and to people on the ground. I think
so we did not pay much attention to the Council of Ethics. the dialogue between all these different partners is facilitated
Some people say that Ferd should do much more and should by the diplomatic community.
do different things, but on the whole it’s good actually to use MF
part of my time and intellect to make a difference within this
field.

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