World's largest sovereign wealth fund takes stand against deforestation

Norway's Government Pension Fund Global — the world's largest sovereign wealth fund — is adopting standards to avoid investing in companies linked to tropical deforestation, sending a strong signal that forest destruction is not an acceptable practice for responsible businesses, reports Rainforest Foundation Norway.

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Conducting an analysis of the Norway’s Government Pension Fund Global's (GPFG) annual report, Rainforest Foundation Norway finds that while the fund still invests 137 billion Norwegian kroner ($19.7 billion) in sectors tied to deforestation, it has strengthened its policies to reduce exposure to companies that destroy forests.

The guidelines, which apply to companies with direct or indirect impacts of tropical forests, ask firms to disclose climate change risks associated with their operations. Norway expects these companies to have in place strategies for reducing deforestation, protecting forests, adhering to "industry standards and best practices in the sustainable management of forests", monitoring their supply chains, and disclosing their climate impact and tropical forest footprint.

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Photo: Dieter Schütz  / pixelio.de

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