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CNQ - Canadian Natural Resources News Story

C$25.26 0.9  3.7%

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Large Cap
Market Cap £16.55bn
Enterprise Value £29.85bn
Revenue £12.72bn
Position in Universe 26th / 2677

UPDATE 1-World's largest wealth fund blacklists four Canadian firms for emissions

Wed 13th May, 2020 8:04am
* First exclusion for excessive carbon pollution
    * Three firms blacklisted for other reasons
    * Two other firms admitted back into portfolio

 (Adds background, inclusions, bullets)
    OSLO, May 13 (Reuters) - Norway's $1 trillion sovereign fund
said on Wednesday it had excluded four Canadian oil and gas
companies from its portfolio for producing excessive greenhouse
gas emissions, its first use of that reason to blacklist firms.
    Canadian Natural Resources Ltd  CNQ.TO , Cenovus Energy Inc
 CVE.TO , Suncor Energy Inc  SU.TO , and Imperial Oil Ltd
 IMO.TO  were excluded due to "unacceptable greenhouse gas
emissions", Norges Bank Investment Management (NBIM) said.
    The firms did not respond to requests for comment after
market hours. 
    "The Council on Ethics recommended to exclude the companies
because of carbon emissions from production of oil to oil
sands," NBIM said, referring to its ethics watchdog.
    Excessive carbon emissions became a criterion for exclusion
from the fund four years ago, joining the production of nuclear
arms, landmines and tobacco, human rights violations and other
grounds for removal.
    The ethics council had examined companies in the oil, cement
and steel sectors before recommending its first exclusions based
on excessive greenhouse gas pollution, the fund said.
    NBIM said it had also excluded three other companies -
Egypt's ElSewedy Electric Co, Brazilian iron ore miner Vale SA
 VALE3.SA  and Brazilian power holding Eletrobras  ELET6.SA  -
for causing environmental damage.
    Vale declined to comment. Eletrobras and ElSewedy could not
immediately be reached.
    NBIM, which is a unit of the central bank, said it had taken
a long time to sell shares of several of the blacklisted
companies in a reasonable manner due to the "market situation,
including liquidity in individual shares".
    It always sells its holdings before any exclusions are
announced, to avoid excessive market movements.
    The fund on Wednesday also reversed its earlier exclusions
of two firms - New York-listed AECOM  ACM.N  and Hong
Kong-listed Texwinca Holdings Ltd  0321.HK , both of which are
now eligible for its portfolio.
    AECOM had been excluded for involvement in the production of
nuclear arms, a business it has now discontinued, the fund said,
while Texwinca had been sidelined over perceived breaches of
workers' rights by a subsidiary that has since been liquidated.
    The fund, set up in 1996 to save petroleum revenues for
future generations, is among the world's largest investors,
owning around 1.5% of all globally listed shares. Its exclusions
are often followed by other funds.
    It already excludes most coal miners under a separate
exclusion criteria based on their product. The emissions rule is
meant to separate out firms seen as the biggest polluters in an
industry while holding on to the rest.

 (Reporting by Ismail Shakil in Bengaluru and Terje Solsvik in
Oslo; Editing by Uttaresh.V and Andrew Heavens)
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