The Joint Compensation Fund for the General Pension Scheme, designed to secure Luxembourg’s long-term pension stability, operates under a dual mandate: to generate financial returns while adhering to sustainability and ethical standards.
However, as of Thursday, the fund’s investment criteria have been revised, making its list of prohibited investments less restrictive.
While investments in companies involved in the production of controversial weapons, such as cluster bombs and chemical weapons, remain strictly off-limits, 18 companies have been removed from the fund’s red list. Among them are Rheinmetall and Hensoldt, two arms manufacturers previously flagged for producing “controversial weapons”. The fund justified their removal by stating that these companies no longer engage in such activities.
Additionally, the US toy manufacturer Mattel has been cleared for investment, following improvements in its labour and human rights practices.
However, certain companies remain on the red list, including Leonardo, BAE Systems, and Rolls Royce, which are involved in activities such as building small nuclear reactors.
Meanwhile, six new companies, predominantly based in China, have been added to the list of prohibited investments.
