ABSTRACT

It was not until recently that financial institutions have been recognized as key-actors in channelling human rights due diligence of corporations. The Norwegian Sovereign Wealth Fund has provided a pioneer model in making investment contingent upon corporate compliance with international human rights and environmental standards. Disinvestment is used both as a preventive tool and a reactive measure when there is the unacceptable risk of violation on the part of a company in which the Fund has invested. This chapter explores the divestment procedure of the Fund as a tool to foster corporate accountability for violations of international law.