The world’s largest sovereign wealth fund (SWF), which is owned by Norway, could be selling its $1 billion stakes in Glencore.
Known’s as the world’s largest SWF, the Norwegian fund has about $1 trillion in assets.
Norway’s SWF is looking at abiding by stricter ethical investing rules which could see the largest SWF selling all its stakes in any of its portfolio companies who generate up to 30% of their revenue from coal.
The new guideline will also mean that the fund will no longer invest or hold stakes in companies that mine more than 20 million tonnes of coal annually or generate more than 10 gigawatts (GW) of power with coal.
Martin Norman, Sustainable Finance Campaigner at Greenpeace in Norway told Reuters News that:
“What this does do … is give a very clear signal to both governments and companies that the time for financing fossil fuels is coming to an end, for the benefit of both people and planet.”
He further told Reuters that the Norwegian fund could also sell other stakes such as its 1.39% stake in Germany’s RWE worth $186 million, its 2.22% holding in Australia’s South32 worth $266 million and the 1.03% it owns of Germany’s Uniper.
Glencore was not available for comments.
According to data compiled by Reuters, the fund will sell its stakes in about 83 mostly coal-producing companies including Peabody Energy and Coal India, as well as power producers ranging from Portland General Electric to Korea Electric Power.