OSLO, May 29 (Reuters) – Norway’s $740-billion sovereign wealth fund, the world’s largest, is examining labour conditions in the mining industry and may sell out of firms that violate workers’ rights, the head of the fund’s ethics council said.
The fund could also divest from companies involved in cattle ranching, if working conditions on farms are exploitative, and from firms implicated in illegal or unregulated fishing.
“Working conditions, slave-like working conditions, … is a very important priority,” said Ola Mestad. “We have been trying to identify different sectors: (one of them) could be mining.”
The fund invests Norway’s revenues from oil and gas production for future generations. It is one of the world’s largest investors with holdings in some 7,500 companies.
It has excluded firms for what it deems to be unethical behaviour based on the advice of its ethics council, an independent body reporting to the finance ministry, which has ultimate responsibility for the fund. The ministry tends to follow the council’s recommendations. The fund also bans investments in some industries – nuclear arms, anti-personnel landmines, cluster bombs and tobacco.