Luxembourg has decided against investing in the aviation giants

The Luxembourg Government has officially confirmed that there are no financial links between the state Pension Fund and the major aerospace corporations. Responding to a parliamentary question from MP Marc Goergen, the Minister for Health and Social Security, Martine Deprez, stated that the fund and its investment structure have neither direct nor indirect investments in Airbus and Boeing. With the exception of funds specialising in property and infrastructure, this state-owned body does not use intermediary investment instruments, preferring to hold shares or bonds in public companies directly.

The request was prompted by MPs’ concerns that pension savings might be channelled towards funding arms production via subsidiaries of corporations, including companies such as SpaceX, Airbus and Boeing. As investment in the latter two corporations is strictly prohibited under the fund’s rules, it is technically impossible to divert public funds to their military divisions. At the same time, the minister declined to comment on Luxair’s possible plans to purchase new aircraft from the American manufacturer, despite Boeing being on the investment blacklist. Martine Deprez stated that the government cannot comment on procurement projects undertaken by private companies.

To monitor compliance with ethical standards, the Foundation engages a specialist external firm to carry out a thorough screening of the entire investment portfolio. This regular review is based on the international standards of the UN Global Compact, covering the protection of human rights, environmental safety, labour rights and anti-corruption, as well as the OECD Guidelines for Multinational Enterprises. A key restriction for the Fund is an absolute ban on investing in commercial entities that manufacture or trade in prohibited types of weapons. The Board of Directors reviews this restricted list annually, adding or removing companies as necessary. These strict criteria apply equally to direct investments and to the three separate sub-funds dealing with property and infrastructure projects.