OSLO, Dec 22 — Norway’s US$1.4 trillion (RM5.9 trillion) wealth fund has divested from Chinese pharmaceutical firm Yunnan Baiyao, saying the decision was because the company uses and sells body parts from pangolins, an endangered species.
The fund also said in a statement issued late yesterday it had put Marfrig Global Foods, one of Brazil’s largest producers of beef, under observation for possible exclusion from its investments for contributing to “severe environmental damage”.
The fund, one of the world’s largest investors, follows an ethical mandate set by parliament and is not allowed to invest in companies that produce nuclear weapons, tobacco or cluster munitions, among other things.
The fund held a 0.11 per cent stake in Yunnan Baiyao, worth US$23 million at the end of 2020 according to fund data. It didn’t say when it had made the divestment. The Chinese company was not immediately available for comment.
Referring to Marfrig, the fund’s ethical watchdog said deforestation occurs on properties in its supply chain.
“Marfrig’s supplier monitoring has not been sufficient to avoid deforestation. Moreover, the monitoring system has mainly targeted the Amazon. Suppliers from other regions with a high rate of deforestation have barely been checked,” the watchdog said.
The company was not immediately available for comment outside normal office hours in Brazil. The fund had a 0.22 per cent stake in the company worth US$4.4 million at the end of 2020, according to fund data. — Reuters
