2015: Norway Divested from 73 Companies

norway3

Norway’s Government Pension Fund Global (GPFG) recently issued its annual responsible investment report revealing they divested from 73 companies in 2015 following an assessment of environmental and social risk factors. The divestment decisions are made by the manager of the fund, Norges Bank Investment Management (NBIM). NBIM uses its guidance under the management mandate. In 2015, NBIM divested from 16 companies involved with coal-fired power generation.

Asset owners are looking at carbon-stranded assets looking to possibly exclude them from their portfolios. The board of the California State Teachers’ Retirement System (CalSTRS) voted to divest from U.S. companies that produce coal for energy generations. The exposure was about US$ 1.5 million for the pension giant. Sharon Hendricks, chair of the investment committee at CalSTRS issued a statement, “We determined that given the financial state of the industry, the movement of the regulatory landscape and coal’s impact on the environment, its presence reflects a loss of value.”

Hendricks added, “We will now move ahead to determine the fiduciary appropriateness of non-U.S. thermal coal companies in the CalSTRS portfolio and make an additional decision based on those findings.”

Top Areas of Company Divestment – NBIM 2015 Data

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute
 
institutional investor investment mandates