Norway's central bank, which is responsible from the management of the country's $900 billion sovereign wealth fund, excluded 10 companies from its portfolio due to the product-based coal criterion, it announced on Tuesday.
Norges Bank, on behalf of the wealth fund, applies ethical standards focusing on sustainable economic and environmental development. In its announcement, the bank said that this marks the third tranche of coal exclusions from the fund.
In total, Norges Bank has so far excluded 69 companies and placed 13 companies under observation based on the product-based coal criterion.
The ten companies excluded are, CEZ from Czech Republic, Eneva from Brazil, Great River Energy from the U.S., HK Electric Investments from Hong Kong, Huidan Energy from China, Korea Electric Corp. from South Korea, Malakoff Corp. from Malaysia, Otter Tail Corp. from the U.S., PGE from Poland and SDIC Power Holdings from China.
Additionally, NorthWestern Corp. and Portland General Electric Company were put on observation.
Norway, Europe’s largest oil producer and the world’s third largest natural gas exporter after Russia and Qatar, has an oil fund currently worth $900 billion.
The Norwegian government can spend only 4 percent of this per year, which is the expected real return on the fund, according to Norges Bank Investment Management, which was delegated by the country's parliament to manage the fund.
The fund, which controls more than 1 percent of the world's market capitalization, enforces ethical standards on its investments.
By Murat Temizer