Glencore among 15 firms blacklisted by $1.3trn Norway fund
Norway’s $1.3 trillion wealth fund blacklisted 15 companies last year, including Glencore Plc, as part of a strategy by the world’s biggest sovereign investor to fight unethical conduct at some of the most powerful corporations.
Other companies added to the Oslo-based fund’s exclusion
list in 2020 were RWE AG, Canadian Natural Resources Limited and Anglo American
Plc, the investing behemoth said in a report on Thursday.
“We divest from companies where we no longer wish to be a
shareholder for ethical or sustainability reasons,” the fund said. “By not
investing in these companies, we reduce our exposure to unacceptable risks.”
The fund said the 15 stocks it excluded from its portfolio
last year were singled out based on ethical considerations ranging from human
rights violations to severe environmental damage. It exited another 32 firms due
to its assessment of basic environmental, social and governance risks, it said,
without naming the companies.
The Oslo-based fund generated $123 billion in returns in
2020, marking its second-best performance ever thanks in large part to tech
stocks. But Nicolai Tangen, chief executive since September, said last month he
doesn’t expect the stimulus-driven surge in equity markets to continue.
Some of the fund’s biggest losses last year were tied to its
holdings of oil stocks, and Tangen has made clear he wants to focus more on
sustainability to fight everything from pollution, to corruption and sexism.
The 54-year-old former hedge fund manager says his strategy will rely largely
on a “forensic” approach to ethical investing, implying portfolio companies will
face more intense scrutiny.
Here’s the full list of 2020 exclusions…
AGL Energy Ltd
Anglo American Plc
Glencore Plc
RWE AG
Sasol Ltd
ElSewedy Electric Co
Vale SA
Canadian Natural Resources Limited
Cenovus Energy Inc
Imperial Oil Limited
Suncor Energy Inc
Centrais Eletricas Brasileiras SA
Formosa Chemicals & Fibre Corp
Formosa Taffeta Co Ltd
Page Industries Ltd
Earlier exclusions of Drax Group Plc, AECOM and Texwinca
Holdings Ltd were revoked, while four companies including BHP Group Ltd were
placed on an observation list.
Oil divestment
Built from Norway’s North Sea oil and gas riches, the fund
holds about 1.5% of all listed companies globally. Last year, it sold its
entire portfolio of stocks focused on oil exploration and production, marking a
major step away from fossil fuels.
The fund invested in 225 companies in the oil and gas sector
last year, down from 311 in 2019. Their value totaled 236.6 billion kroner
($28.4 billion), down from 357.5 billion a year earlier. Royal Dutch Shell Plc
and BP Plc were among the worst-performing investments, it said.
Emissions from companies in the fund’s equity portfolio fell
14% from 2019, mainly due to the removal of oil and gas exploration and
production companies from the fund’s benchmark, it said.
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