March 8, 2018 Read More →

Norwegian Wealth Fund Considers Further Emissions-Related Divestments


The ethics watchdog for Norway’s $1-trillion sovereign wealth may blacklist more companies that produce too much greenhouse gas by scrutinizing more industry sectors, including shipping and power.

Carbon emissions became a criteria for exclusion from the fund in 2016 and last year the watchdog recommended that “a small handful” of firms be excluded from the fund for producing too much greenhouse gas emissions in either the oil, cement and steel industries.

Those recommendations are currently under review with the board of the central bank, which oversees the fund, and a public announcement is expected soon, the bank’s governor told Reuters on Feb. 27.

Johan H. Andresen, chair of the fund’s publicly appointed Council on Ethics, said the watchdog would look at more firms in the energy, steel and concrete industries and add more sectors, including shipping and power producers.

Speaking in an interview ahead of publication of the council’s annual report on Thursday, he said: “I expect there will be more companies recommended for exclusions based on the climate criteria.”

“Shipping and power producers are among the sectors we may be looking at.”

The world’s largest sovereign wealth fund was created from the proceeds of Norway’s oil industry and operates under ethical guidelines set by parliament.

It owns shares in 9,100 companies, 1.4 percent of the world’s listed equity, so its decisions to drop or reinstate companies from its investments carry considerable weight among investors.

More: Norway’s wealth fund may expand emissions blacklist to more companies

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