The Maduell-Linaburg Transparency Index has been widely adopted by sovereign wealth funds in their annual reports and various relevant publications and documents and is a means of rating the transparency of sovereign wealth funds
I consider it appropriate to refer to the best practices of transparency in sovereign funds. The Norwegian Sovereign Wealth Fund is one of the best sovereign funds in terms of governance and transparency, and the largest and most influential. The Norwegian Sovereign Fund is also considered a model for best practices because it did not ignore the importance of integrating environmental and community issues. and governance in the investment decision-making process, and the Fund has succeeded in this field, achieving high rates of return in light of the dependence of its investments on sustainable development
Norway began exploiting its oil and gas reserves in 1969, and in 1990 the Norwegian government established the sovereign wealth fund, which was first called the Petroleum Fund, and then renamed to the Government Pension Fund, which is divided into two parts, the first being the pension fund (GPFG). The second is the Norwegian Government Pension Fund (GPFN), the aim of which is to use its revenues from oil reserves away from the impact of volatile oil income on government spending, as is the case in setting the general budget of the State of Kuwait and the effects of oil price fluctuations on the budget results from incapacity or incapacity
The Norwegian Fund also acts as a tool for long-term financial savings, ensuring that Norway’s oil wealth benefits not only for the present generation but also for future generations, thus fulfilling the moral obligation in line with the principle of intergenerational equality. Norway’s general budget benefits only 3% of the proceeds The Fund This represents about 20% of Norway’s budget, which achieves the financial sustainability of the Fund and the state budget
The Fund is a responsible investor in fulfilling this ethical obligation, through the practice of good corporate governance, and the promotion of sustainable development in economic, social, and environmental terms. The Norwegian Sovereign Fund, as a for-profit entity, was able to achieve the difficult equation in the balance between maximum financial returns and sustainable development, as The Norwegian Parliament adopted the Fund’s Ethical Guidelines in 2004, which basically clarify the requirements for sustainable development, and are based on the prohibition of investments that would expose the Fund to an unacceptable risk of contributing to gross or systematic violations, whether related to human rights or the environmental field or the field of ethics, and evaluation process for those principles was conducted in 2008 and revised in 2010
One of the most important ingredients for the success of the Norwegian sovereign fund is its commitment to the principles of sustainable responsible investment (ESG), an investment that takes into account factors other than focusing on financial statements and the performance of the invested sectors, considerations based on the United Nations Principles for Responsible Investment (UN PRI), and as we mentioned earlier The Norwegian management philosophy of its sovereign fund has succeeded in integrating between maximizing financial returns and achieving sustainable investment, taking advantage of the size of its fund and its investment impact
Therefore, and in this context, the proposal submitted by some members of parliament, which was previously referred to as a request to amend the General Investment Authority (KIA) law, to allow the publication of periodic reports on the performance of the authority and sovereign funds, in my opinion, is an incomplete amendment, as it will not achieve the principles of governance in its comprehensive sense, but rather A small amount of it, and I believe that this legislative amendment proposal will not lead to the oversight role of the legislative authority as required
Accordingly, it requires that there be a legislative amendment that achieves the effective participation of the National Assembly in achieving wise management of the sovereign funds, and I do not mean here participation in the executive management in contravention of the provisions of the Constitution, but rather the responsible participation in it as is followed in Norway
Bader alhammad 