Norway wealth fund sells stakes in 3 Jardine firms on environment concerns

NORWAY’S US$1.6 trillion sovereign wealth fund has excluded three firms from its portfolio resulting from issues that mining exercise might destroy the pure habitat of critically endangered orangutans, the fund mentioned in a press release.

The fund offered its holdings in Jardine Matheson Holdings, Jardine Cycle & Carriage and PT Astra International Tbk resulting from a threat that they had been contributing to, or answerable for, “severe environmental damage”, it mentioned late on Thursday (Feb 29).

The selections had been based mostly on suggestions from the Norwegian fund’s council on ethics, which mentioned PT Astra International’s Martabe Gold Mine in Sumatra was widening its space of operation and posing a menace to the Tapanuli orangutan.

Jardine Cycle & Carriage and Jardine Matheson Holdings had been each excluded as a result of they’re guardian firms of Astra, the council mentioned in its suggestion.

The Jardines group of firms didn’t instantly reply to a request for remark when contacted by Reuters.

Norges Bank Investment Management, which operates the Norwegian sovereign wealth fund, on the finish of 2023 held shares in Jardine Matheson Holdings value US$94.2 million, in response to the fund’s newest disclosure.

Its stake in Jardine Cycle & Carriage was value US$13.5 million on the identical time, whereas it held shares of US$15.0 million in Astra.

NBIM’s holdings are offered earlier than any announcement of exclusion is made.

Set up in 1996 to protect Norway’s oil revenues for future generations, the fund has an moral mandate set by parliament. It holds 1.5 per cent of all globally listed shares, and its selections are sometimes adopted by different buyers. REUTERS