Norwegian Oil Fund’s dirty investments continue / News / The Foreigner

Norwegian Oil Fund’s dirty investments continue. The Sovereign Wealth Fund’s stakes in the coal industry are higher than previously acknowledged. These holdings amount to NOK 82.2bn in the coal sector, a study conducted by a handful of environmental organisations reveals. Report “Dirty & Dangerous” was a collaborative effort between three environmental organisations. These were the German organisation Urgewald, Norway’s The Future in our Hands, and Greenpeace Norway.

coal, oilfund, swf, norway, investments, stocks, bonds



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Norwegian Oil Fund’s dirty investments continue

Published on Wednesday, 26th November, 2014 at 12:00 under the news category, by Susanne Tunge Østhus.
Last Updated on 26th November 2014 at 13:02.

The Sovereign Wealth Fund’s stakes in the coal industry are higher than previously acknowledged. These holdings amount to NOK 82.2bn in the coal sector, a study conducted by a handful of environmental organisations reveals.

Coal mining
This picture shows a machine at work at a coal mine in Wyoming.Coal mining
Photo: Public domain/Wikimedia Commons


Report “Dirty & Dangerous” was a collaborative effort between three environmental organisations.

These were the German organisation Urgewald, Norway’s The Future in our Hands, and Greenpeace Norway.

Head of the Norwegian Pension Fund, Yngve Slyngstad told parliamentarians at a parliamentary hearing earlier this year that, "Our investments in coal are limited and falling. They have been halved over the last two years".

Reuters also reported Mr Slyngstad as saying that the SWF held NOK 2.5bn (about USD 366.2m at today’s ROE) in coal mining stocks last year.

“This is a gross understatement,” states Heffa Schuecking, director of the German NGO Urgewald, and author of the report.

“Dirty & Dangerous” highlights that the numbers Slyngstad gave only include companies that Norges Bank Investment Management (NBIM) classifies as coal producers.

NBIM’s classification is problematic as it is too narrow, according to the report.

What is revealed is that Norway’s SWF holds over NOK 82.2 billion (some USD 12.04bn) assets in the coal sector. NOK 68.7bn is as being in shares, with the remaining NOK 13.5bn being bonds (about USD 10.06bn and USD 1.97bn, respectively).

 “A substantial part of the world’s coal is, however, produced by power companies which operate their own coal mines. And NBIM generally classifies these companies as ‘utilities’,” it is stated.

Moreover, the document shows that the SWF’s 2013 portfolio contains 158 coal sector companies.

“We were not only shocked by how much, but also by what we found,” says Greenpeace Norway’s Truls Gulowsen.

The full “Dirty & Dangerous” report can be found here (external link).




Published on Wednesday, 26th November, 2014 at 12:00 under the news category, by Susanne Tunge Østhus.
Last updated on 26th November 2014 at 13:02.

This post has the following tags: coal, oilfund, swf, norway, investments, stocks, bonds.





  
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