The Ecologist

 
Logging
The targeting of land for palm oil plantations poses a bigger threat to deforestation than illegal logging
More articles about
Related Articles

Norway accused of 'hypocrisy' over ethical investment

Tom Levitt

24th August, 2010

The Norwegian government has sold its investment in one Malaysian logging and palm oil company but remains a big shareholder in another accused of destroying rainforest and orang-utan habitats

The Norwegian government is under pressure to sell its investments in Sinar Mas, a controversial palm oil and timber group, which has admitted illegally clearing high conservation value forest.

The country's oil assets have made it one of the biggest investors in the world, with a fund of more than $450 billion managed by the state-owned Norges Bank Investment Management (NBIM).

It manages these funds on ethical grounds and this week said it had sold its investments in Malaysian firm Samling Global, accusing the company of illegal logging and saying there was an 'unacceptable risk of contributing to current and future severe environmental damage.'

Samling has been accused of illegally sourcing timber from a wildlife sanctuary, ignoring the rights of indigenous groups, and corruption.

The state-owned fund has also previously excluded the British-owned mining company Vedanta Resources, which the Indian government found guilty of violating the human rights of the local communities.

However, Norway remains one of the biggest shareholders in the controversial Indonesian logging and palm oil group Sinar Mas, with, according to its most recent published accounts, a holding of more than $16m in Sinar Mas' palm oil arm, Golden Agri Resources.

Sinar Mas has been caught clearing orang-utan habitats and carbon-rich peatlands despite repeated promises to clean up its act. An independent audit of its activities recently found it was clearing land for palm oil plantations before it had received permits or even made conservation assessments.

Hypocrisy

Only last week, Norway made its first $30m payment of a $1 billion commitment to Indonesia to help protect its rainforest saying it wanted to 'support efforts' to reduce deforestation.

Greenpeace said it was hypocritical of the Norwegian government to be handing over millions of dollars to protect Indonesia's rainforest while at the same time 'profiting from its destruction' through investments in Sinar Mas. It called on the Norwegian government to clean out the other 'skeleton' in its investment fund.

Neither the NBIM or the Norwegian government said it could comment on decisions to exclude specific companies until after they have been made public. It said any decision would be based on recommendations from the Council of Ethics.

Useful links

Norges Bank Investment Management (NBIM)

Add to StumbleUpon
  READ MORE...
NEWS
Palm oil giant Sinar Mas admits breaking law by clearing peatland
Indonesia's largest palm oil and pulp company started clearing land for palm oil plantations before it had received permits or made conservation assessments
INVESTIGATION
How can we tell which companies are really green?
Green claims are everywhere: surely there must be some simple way of measuring exactly what impact a company is having on the climate?
NEWS
Palm oil firms letting four-year-olds sign contracts
'Chaotic' legislation in Indonesia is allowing palm oil plantation companies looking to produce biofuel to bully local people off their land
NEWS
Vedanta ‘in total contempt of the law’ says Indian government
Damning Indian government report says British-owned mining company’s plans should be blocked, as two local tribal campaigners are abducted
NEWS
Palm oil giant accused of rainforest destruction caught ‘red-handed’
Indonesia’s largest palm oil and pulp group, Sinar Mas, is continuing to destroy rainforests and peatland despite promises to end the practice

 

Previous Articles...

ECOLOGIST COOKIES

Using this website means you agree to us using simple cookies.

More information here...

 

FOLLOW
THE ECOLOGIST