Norway's Oil Fund Excludes Companies Including BAE Systems on Ethical Grounds
January 16 2018 - 5:52AM
Dow Jones News
By Dominic Chopping
Norges Bank Investment Management, the arm of Norway's central
bank that manages the country's $1.1 trillion oil fund, said
Tuesday that it has excluded a further nine companies from the fund
on ethical grounds.
Among those excluded is U.K. weapons maker BAE Systems PLC
because of its involvement in the production of nuclear weapons.
Data from the end of 2016, the latest available, shows that the oil
fund held a 1.47% stake in BAE Systems.
AECOM, Fluor Corp. and Huntington Ingalls Industries Inc. have
also been excluded for the same reason, while Honeywell
International Inc.'s exclusion is maintained based on this
criterion, it said.
The Norwegian Ministry of Finance has issued specific guidelines
for the oil fund with criteria for observation and exclusion
endorsed by Norway's parliament.
These criteria say the fund must not invest in companies which
produce weapons that violate fundamental humanitarian principles
through their normal use, produce tobacco, or sell weapons or
military material to certain countries. Companies may also be
excluded if there is an unacceptable risk of conduct that is
considered grossly unethical.
Norges Bank decides on the exclusion of companies from the
fund's investments, or to place them on an observation list.
Further exclusions announced Tuesday include Evergreen Marine
Corp (Taiwan) Ltd, Korea Line Corp., Precious Shipping PCL and
Thoresen Thai Agencies PCL due to the "risk of severe environmental
damage and serious or systematic violations of human rights."
Pan Ocean Co. has been placed under observation based on the
same criteria while Atal SA has also been excluded due to
unacceptable risk of serious or systematic violations of human
rights, Norges Bank said.
There are currently over 140 companies excluded from the fund
and around 20 under observation.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
January 16, 2018 05:37 ET (10:37 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Honeywell (NASDAQ:HON)
Historical Stock Chart
From Mar 2024 to Apr 2024
Honeywell (NASDAQ:HON)
Historical Stock Chart
From Apr 2023 to Apr 2024