The NOK3.1trn (€405bn) Norwegian Government Pension Fund has excluded Malaysian logging company Lingui Developments Bhd on the recommendation of the Council of Ethics.
Lingui, which operates in the tropical rainforest, has been blacklisted “based on the risk that the company contributes to severe environmental damage” the Ministry of Finance said.
The move brings to 51 the number of companies excluded from the fund’s investment universe. There are now 10 firms excluded for severe environmental damage.
Lingui is a subsidiary of Samling Global, which wasexcluded by the fund in August 2010. The fund had a stake worth NOK2.7m (€346,476) in Bursa Malaysia-listed Lingui as at the end of 2009. “The divestment from the company has been completed,” the Ministry stated.
For its part, Lingui says its wood products are derived from forests “managed in accordance to approved international and local regulatory standards”.
The Ethical Council based its recommendation on satellite images, documentation and field visits.
Last year the Fund faced accusations over its investments in oil and gas companies in Burma in EarthRights International’s Broken Ethics report.