Today, Norway’s Ministry of Finance banned Norway’s Government Pension Fund – Global from investing in two companies in the global logging and palm oil sectors because each pose an “unacceptable risk that the company is responsible for severe environmental damage”: WTK Berhad Holdings and Ta Ann Berhad. Both companies have significant operations in Malaysia’s Sarawak province, a global biodiversity hotspot and critical global carbon sink.
Norway’s Pension Fund is valued at approximately $792 billion, amounting to approximately one percent of global stock equity. The fund has frequently set the standard for responsible investors and triggered other divestments. Investors, lenders, and underwriters should seriously consider whether holdings in WTK Berhad and Ta Ann Berhad pose outsized reputational, regulatory, trade, and other risks. Continue Reading