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

Jardine Cycle & Carriage

01/03/2024 08:38

OSLO, March 1 (Reuters) - Norway's $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 Ltd
 JARD.SI , Jardine Cycle & Carriage Ltd  JCYC.SI  and PT Astra
International Tbk  ASII.JK  due to a risk that they were
contributing to, or responsible for, "severe environmental
damage", it said late on Thursday.
    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 (NBIM), which operates the
Norwegian sovereign wealth fund, at the end of 2023 held shares
in Jardine Matheson Holdings worth $94.2 million, according to
the fund's latest disclosure.
    Its stake in Jardine Cycle & Carriage was worth $13.5
million at the same time, while it held shares of $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% of all globally listed shares and its decisions
are often followed by other investors.

 (Reporting by Terje Solsvik; Editing by Kim Coghill)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70;))