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Norway Pension Fund Considers Brazil Divestment Over Amazon Deforestation

Media, September 09, 2019

Reported by Eco-Business—Norway’s biggest pension fund, KLP, may divest from any transnational commodities companies operating in Brazil if they work in collaboration with parties that contribute to deforestation.

 

In the wake of the Amazon fires, the governments of Norway and Germany suspended all payments to the Amazon Fund, a financial initiative that finances the various conservation efforts relating to the Amazon Rainforest.

Along with KLP (their decision is currently pending), the primary reason for these governmental withdrawals is to send a message and raise mass awareness about the perils of deforestation.

With approximately US$170 billion in combined assets, these funds carry significant weight and influence. Speaking to Eco-Business about the situation, Jeanette Bergan. head, Responsible Investments initiative at KLP, said:

Responsible corporate behaviour, or responsible behaviour from anybody, is always a challenge when there is a conflict between economic development and responsible business practice or ethics.”

KLP has severed its ties with unethical companies in the past, including  Vale, the Brazilian mining colossus, as a result of the its negligence towards two devastating tailings dam disasters. 

If the withdrawal does occur, this could spark a dialogue that prompts a positive change.

We’ll provide updates on this developing story, but in the meantime, you can read the full scoop at Eco-Business.



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Leo Tolstoy

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