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ESG

Norway fund yanks investments from 2 energy firms

Government Pension Fund Global, Oslo, has divested two U.S. energy companies and one Chinese fabrics producer from its portfolio effective Jan. 17, according to a statement Thursday from Norges Bank Investment Management, which manages the sovereign wealth fund's assets.

Investments in Evergy Inc. and Washington H. Soul Pattinson & Co. were excluded from the 8.4 trillion Norwegian kroner ($974 billion) sovereign wealth fund's portfolio. Both of the companies were found to be deriving 30% or more of revenues from thermal coal production, against GPFG's internal investment policy.

GPFG's Council on Ethics, which makes recommendations about exclusions, said the fund should also exclude equity investments in Texwinca Holdings, which as of Dec. 31, 2017, equaled $7.7 million, because of systematic human rights violations.

Texwinca owns 50% of the shares in Megawell Industrial, the owner of garment factories Hugo Knit and Kollan in Vietnam. The Council of Ethics made recommendations based on investigations into working conditions at these factories, which uncovered discrimination against women and occupational health and safety hazards.

Additional details could not be learned.