Economy & Politics

Blacklisted companies in the state portfolio

If Luxembourg has placed 126 companies on its black list, the Luxembourg Intergenerational Sovereign Fund (FSIL) nevertheless holds shares in some of these companies. A paradox that the Ministry of Finance does not deny.

If Luxembourg has placed 126 companies on its black list, the Luxembourg Intergenerational Sovereign Fund (FSIL) nevertheless holds shares in some of these companies. A paradox that the Ministry of Finance does not deny.

(DH with Cordula Schnuer) – Already accused in 2017 of investing in companies that hardly respected the ethical or environmental criteria in force, the Luxembourg Intergenerational Sovereign Fund (FSIL) is again pointed out. According to the survey published by the Luxembourg Times, the fund created in 2015 and intended to generate income for future generations currently holds shares in companies that Luxembourg has itself placed on a black list.

These are companies such as Lockheed Martin and Raytheon accused in particular of selling arms to Saudi Arabia during the war in Yemen. A conflict that has killed or injured more than 17,500 people.

Unwanted but suppliers

For almost ten years, Luxembourg has nevertheless been attentive to the fact of regularly “cleaning up” its equity portfolio according to the ethical criteria adopted progressively by the State. This is why certain defense specialists such as Thales, Babcock International and even United Technologies no longer appear on the balance sheet for orders placed last year. Placed on a black list, these three companies joined the contingent of 123 other companies considered as “undesirable”, including 71 specialized in chemical and biological weapons, or nuclear and incendiary.


WI, Cargolux Logo 50 anniversary. Foto: Gerry Huberty / Luxemburger Wort

The government confirms that it is aware of the transport of military equipment by the air cargo company. Two ministers recognize, on Tuesday, the delivery of two helicopters to Nigeria last January.


In detail, Luxembourg invests in 17 military operators on its blacklist for an amount of a little less than 327 million euros. As such, Lockheed Martin remains a leading investment. Saudi Arabia having awarded, in 2019, contracts worth 3.08 billion euros for missile defense systems and military ships to this American company. At the same time, Luxembourg pledged 1.75 million euros for a United Nations relief fund for Yemen.

Asked about the FSIL’s investments in companies such as Lockheed Martin and Raytheon, the Ministry of Finance on which the fund depends said that “the FSIL invests almost exclusively in what is known as Exchange-Traded Funds (ETF) and, unlike the Compensation Fund, does not hold any direct position in individual securities ”.


Each year, the government injects 50 million euros into this Fund

The Minister of Economy and Finance this Friday presented the 2016 results of the Intergenerational Sovereign Fund, this establishment created in 2015 to guarantee savings for future generations.


Another explanation provided by the ministry: “The FSIL cannot be based on lists excluding companies or individual sectors because when it is an ETF, it is practically impossible for an investor to exclude selected companies “


Tags

Related Articles

Back to top button
Close
Close