The Strategist

Norway's pension fund to dump gaming and alcohol companies shares

05/29/2019 - 10:32

Norway's largest pension fund KLP will refuse to invest in companies that receive more than 5% of the proceeds from gambling and the sale of alcoholic beverages.

The fund manages assets of about $ 80 billion, including pension savings of state civil servants.

KLP intends to sell so-called "sinful shares" in the amount of about $ 320 million, reports The Financial Times. Among the 90 companies that fall under these actions are the brewing concerns AB InBev and Heineken, the world's largest manufacturer of luxury goods LVMH, which produces cognac and champagne of famous brands, as well as the leader of the global alcohol industry Diageo.

“We don’t just think about what brings the most revenue, we also think about contribution of our investments to positive and responsible social development,” said the fund’s chief executive Sverre Thornes. “We manage $ 80 billion for more than 1 million Norwegians. This is huge a responsibility".

KLP indicates World Health Organization statistics, according to which more than 50% of violence in Norway occurs while intoxicated, and alcohol-related expenses in the country as a whole amount to $ 2 billion annually.

In 2014, the pension fund refused to invest in companies that receive more than half of revenue was from the coal business. In early May, KLP announced a reduction to 5% of this level.