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As
part of Norway's efforts to shift its "rainy day" fund away from
oil, the country's parliament on June 12 adopted a plan to drop
all dedicated oil and gas explorers and producers, as defined by
stock market indices provider FTSE Russell, from the fund's
benchmark index.
The fund can still invest in oil firms that have refineries and
other downstream activities, so-called integrated companies such
as Royal Dutch Shell <RDSa.L> and ExxonMobil <XOM.N>.
The finance ministry wants the central bank, which manages the
fund, to present a time schedule for the phase out by Sept. 13
to the finance ministry, which will then establish its own plan.
The fund has previously said that any divestments would take
place gradually and over time.
Norway has said the decision is to reduce the exposure of the
country's wealth to the risk of a permanent drop in oil prices,
but environmental campaigners have seized on it as an example of
an investor turning away from the oil industry.
Also on Friday, the finance ministry requested the central
review and describe its efforts related to climate risk in the
fund's investments by Dec. 1.
In particular, it wants the bank to describe how it assesses
climate risk across the portfolio, whether it is the companies
it is invested in, the real estate properties or its bond
holdings.
(Graphic: Largest sovereign wealth funds - http://tmsnrt.rs/2tskfub)
(Reporting by Victoria Klesty and Gwladys Fouche; Editing by
Elaine Hardcastle
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