Wealth fund divests out of 23 Asian palm oil firms

The Norwegian Government Pension Fund Global (GPFG) disposed of its stakes in 23 Asian palm oil companies in 2012, including Kuala Lumpur Kepong and Genting Plantations.

The GPFG, which is the world’s largest sovereign wealth fund, was reportedly to have also divested its stake in Astra International, First Resources, Golden Agri, Indofood Agri and Wilmar, according to JP Morgan Asia Pacific Equity Research.

In its research note on Monday, it said the GPFG had divested out of these companies, citing concerns about unsustainable palm oil production.

JP Morgan Research said the divestment was also played up by EU environmentalist groups, describing it as a victory against destructive practices on rainforests.

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