How Norway’s sovereign wealth fund has started divestment

Our thanks to friends in WWF Norway for this information: highlights from Norway’s Sovereign Wealth Fund’s first responsible investment report. Note that while fossil fuels are the headline item, other divestments are based on mining damages, deforestation caused by palm oil plantation planting, and abuse of water rights.

1) On climate change:

– Conducted a GHG analysis of companies in its equity portfolio for the first time in 2014
– Divestment from 21 coal, tarsand and cement companies based on GHG emissions (2014)
– Divestment from 14 coal mining companies based on the vulnerability of the high-carbon intensity of the coal itself, and environmental degradation caused by mountain-top removal and deforestation (11 in 2013, 7 in 2014)
– Accounts for risk of climate change regulation to fossil fuel companies, and starts to do so for impact of fossil fuels on climate change
– Climate change is one of three new focus areas (with children’s rights and water management)
– Accounts for new increase in renewable energy & energy efficiency investments (small and only in stocks, but is noted as a mandate)
– New green bond mandate accounted for in 2014

2) Other highlights:

– Divestment from 16 gold-mining, 17 general mining and 27 palm oil companies based on environmental degradation, human rights, water rights, and transparency (2012-2014)
– In 2014, divested from 49 companies total based on social & environmental risks

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