Norway: Watchdog to reveal list of companies world’s largest wealth fund should exclude due to climate concerns

Author: Sveinung Sleire, Bloomberg, Published on: 30 October 2017

"Norway's $1 Trillion Fund About to Get List of Climate Baddies," 26 October 2017

Norway’s $1 trillion sovereign wealth fund may soon be advised to dump the worst emitters of gasses that contribute to climate change, according to its watchdog. The Council on Ethics is about to put forward its first recommendations based on new climate gas emission guidelines. While a final decision is up to the fund, the proposals should come as no surprise since the investor seems “well prepared,” Johan H. Andresen, the head of council, said in an interview at the council’s office in Oslo on Monday... "We’re looking at energy, cement production and maybe steel.”

The world’s largest wealth fund, which is overseen by Norway’s parliament, takes into account ethical rules encompassing human rights, some weapons production, corruption, the environment, coal and tobacco when deciding on its investments...

The latest exclusions the fund made were in May, when it announced the divestment of Bharat Heavy Electricals Ltd. on environmental grounds, and placed PetroChina Co. and Leonardo SpA under observation.

But the fund has also said that the increasing list of exclusions - now at more than 130 companies - poses potential difficulties. It could trigger a need to tinker with risk parameters should exclusions skew the portfolio, central bank Deputy Governor Egil Matsen said in an interview in September...

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Related companies: Bharat Heavy Electrical Limited China National Petroleum Corporation (CNPC) Leonardo