STATE OF THE RAINFOREST 2014
78
Norway’s Government Pension Fund Global is the biggest sovereign
wealth fund in the world. With its heavy investments in the
industries that destroy rainforests, the Fund has the opportunity as
well as the responsibility to reduce forest destruction by exerting
influence on the companies in its investment portfolio.
The main drivers of tropical forest destruction are commercial
companies that exploit natural resources found in forest areas
– like timber, minerals or oil – or clear forests to use the land for
agriculture – like palm oil, soy and cattle ranching.
43
The banking
and finance sector indirectly contributes to forest destruction by
providing the capital that makes it possible for companies to exploit
forest resources. Therefore, a very effective approach to reducing
forest destruction can involve getting financial institutions to adopt
no-deforestation policies, and to place demands on the companies
they invest in or lend capital to.
Norway’s Government Pension Fund Global (GPFG) is a good
example. The GPFG is the world’s largest sovereign wealth fund,
with a value of more than USD 800 billion. It invests at least
USD 21 billion in industries that constitute the greatest threats to
the world’s rainforests.
44
The GPFG has investments in at least 88
companies that conduct operations in tropical forest areas and that
belong to the industries of oil and gas, palm oil, soy, mining, cattle
The path to a forest destruction-free
investment portfolio
Risky business
Norwegian pension fund investments in business sectors causing deforestation 2013
Singapore
India
Colombia
Other South
American
countries
Brazil
South
Africa
Central
Africa
Indonesia
Papua
New Guinea
United
States
United
Kingdom
France
Italy
Belgium
Spain
Australia
China
Russia
Norway
Hong
Kong
Japan
South
Korea
Canada
Thailand
Malaysia
Investments in high-risk sectors, equities
Million US Dollars
6 600
2 500
1 000
500
9
Investment in companies operating in
rainforest countries and based in other
countries
Investment directed to companies
based in rainforest countries
Share of investment that goes
through companies based in
non-rainforest countries
