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

Norway’s US$1.6 trillion sovereign wealth fund has excluded three companies from its portfolio due to concerns that mining activity may destroy the natural habitat of critically endangered orangutans, the fund said in a statement.

The fund sold its holdings in Jardine Matheson Holdings, Jardine Cycle & Carriage and PT Astra International Tbk due to a risk that they were contributing to, or responsible for, “severe environmental damage”, it said late on Thursday (Feb 29).

The decisions were based on recommendations from the Norwegian fund’s council on ethics, which said PT Astra International’s Martabe Gold Mine in Sumatra was widening its area of operation and posing a threat to the Tapanuli orangutan.

Jardine Cycle & Carriage and Jardine Matheson Holdings were both excluded because they are parent companies of Astra, the council said in its recommendation.

The Jardines group of companies did not immediately respond to a request for comment when contacted by Reuters.

Norges Bank Investment Management, which operates the Norwegian sovereign wealth fund, at the end of 2023 held shares in Jardine Matheson Holdings worth US$94.2 million, according to the fund’s latest disclosure.

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Its stake in Jardine Cycle & Carriage was worth US$13.5 million at the same time, while it held shares of US$15.0 million in Astra.

NBIM’s holdings are sold before any announcement of exclusion is made.

Set up in 1996 to preserve Norway’s oil revenues for future generations, the fund has an ethical mandate set by parliament. It holds 1.5 per cent of all globally listed shares, and its decisions are often followed by other investors. REUTERS