The Norwegian Oil Fund owns shares worth NOK 138 billion in alcohol companies that engage in aggressive marketing and weaken the possibility of responsible alcohol policy in African countries.
The Norwegian Oil Fund, formally named the Government Pension Fund Global is one of the biggest investments funds in the world and it is heavily invested in alcohol.
The alcohol industry has singled out the young population of Africa as its most important growth market.
«We cannot spend billions on aid to improve people’s lives – while at the same time investing in and profiting from companies that worsen the situation. This is double standards in practice,» says Secretary General of FORUT, Ida Oleanna Hagen.
On 10 April, the Norwegian NGO FORUT launched a new report from the University of Stirling documenting 61 examples of the alcohol industry’s activities in six African countries.
The report shows that:
- The alcohol industry uses sponsorship of sports, culture, and education, as well as donations and corporate social responsibility (CSR), to build trust and gain influence in local communities.
- Many activities are aimed at young people and would be illegal in Norway.
- The alcohol industry partners with local governments and NGOs to strengthen its legitimacy.
- In Uganda, beer is associated with national pride through extensive sports and cultural sponsorship.
- In South Africa, alcohol companies have systematically opposed new alcohol legislation, including through unethical corporate engagement lobbying, donations and funding of alternative impact assessments.
«The oil fund must engage in an active ownership dialogue with the alcohol companies we have invested in, in order to stop aggressive marketing and unethical policy engagement with authorities in African countries,» says Hagen.
If this is not possible, Norges Bank Investment Management (NBIM), which manages the fund, has stated that it will reduce the number of companies in which the fund is invested, and withdraw from companies with high ethical and financial risk. The alcohol industry, as it operates in low-income countries, meets both criteria, according to FORUT.
«The alcohol industry’s practices in Africa are high risk; for human rights, development, public health and Norway’s reputation,» says Hagen.
The launch of the report is part of the campaign The Oil Fund’s Alcohol Problem, a collaboration between FORUT, IOGT in Norway, Juvente and Juba.
Do you agree that the Oil Fund should divest from the alcohol industry?
