The Norwegian pension fund GPFG, the largest in the world and worth US$710 billion, has pulled out of 23 palm oil companies in Indonesia and Malaysia which it judged to unsustainable. GPFG’s investments in the palm oil industry are now reduced by more than 40 per cent.
The fund made this announcement in its annual report on Friday following its move last year to expand its investment guidelines to include deforestation as a threat to future growth. The list of companies GPFG has dissociated its interests in includes amongst others, RSPO (Roundtable on Sustainable Palm Oil) members, some of which have begun certification of their mills and supply base while some have yet to.
The report (published under the name NBIM – which is an arm of the GPFG) can be read here.