ENews: Norway fund bans investments in tobacco companies (fwd)

[Robert Weissman <rob@essential.org>]

Norway fund bans investments in tobacco companies

OSLO, May 10 (Reuters) - The Norwegian government moved on Monday to make
investments of its Petroleum Fund more politically correct, saying it
would not hold stakes in tobacco companies and would set up a separate
environmental fund. 

Investments of Norway's Petroleum Fund, which was created to save surplus
oil wealth for future generations, range from Walt Disney (DIS - news) to
beer maker Anheuser-Busch (BUD - news). Its value rose by 51 percent by
end 1998 to 172 billion crowns. 

In a revised budget published on Monday, the Norwegian government said it
would no longer invest in companies whose main activity is the production
of tobacco, which now account for 500 million crowns of investments. 

A spokesman for the fund said it was too early to comment on the effects
of the new rules. 

One billion crowns would be set aside into a separate fund which would be
managed according to a set of environmental guidelines, such as a
company's achievements of environmental certificates or if they issue
environmental reports. 

It also said the government would open up for the possibility of
exercising voting rights associated with the stocks in the fund's
portfolio to promote human rights and environmental issues.