• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 15 hours Science: Only correct if it fits the popular narrative
  • 9 hours Crazy Stories From Round The World
  • 23 mins EU has already lost the Trump vs. EU Trade War
  • 18 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 8 hours Impeachment Nonsense
  • 1 day Do The World's Energy Policies Make Sense?
  • 10 hours Everything You Need To Know About Trump
  • 1 day What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days China's Renewables Boom Hits the Wall
  • 19 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 days Water, Trump, and Israel’s National Security
  • 1 day Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
Alt Text

Chevron To Buy Anadarko In $33B Deal

Chevron announced that it has…

Charlotte Dudley

Charlotte Dudley

Charlotte is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Premium Content

BP Drags Down Norway Pension Fund

A major Norwegian pension fund has named oil producer BP its worst performing stock, with the fallout from the Gulf of Mexico spill crisis losing $1.7 billion for the fund.

At the end of March – just weeks before the explosion of the BP-operated Deepwater Horizon rig triggered one the biggest oil spills in history – Norway’s Government Pension Fund Global had NOK18.9 billion ($3 billion) invested in BP. But by the end of June, the value of the fund’s investment almost halved to NOK10.5 billion or $1.7 billion.

“BP’s share price halved during the quarter, making it the fund’s single worst performer,” said the fund in its second quarter results, released last Friday.

Returns on the fund’s oil and gas stocks dropped almost 15%, with that sector the fund’s hardest hit, followed by basic materials, financials and technology.

In addition to BP, other poor performers included mobile phone company Nokia and computer giant Microsoft.

Mark Robertson, a London-based communications manager at investment research group EIRIS, said the results demonstrate how environmental, social and governance (ESG) issues can have an “incredibly dramatic impact” on a company’s share price with the high-profile spill serving to focus investors’ minds on responsible investment issues.

“For years we’ve been saying [to investors] you should worry about environmental, social and governance issues and sustainability, not just because it’s about building a more sustainable world, but also because these are exactly the kind of issues – environmental pollution, bribery, corruption, climate change – which have got the potential to signific antly damage a company’s bottom line,” he said.

Robertson recommended investors engage with companies to better understand their ESG position. He added that while it is easy to see why BP has come under scrutiny, the focus could extend to the wider oil and gas sector, particularly as companies go to increasingly greater lengths to secure oil.

Neil McIndoe, London-based head of environmental finance at research consultancy Trucost, said the experience of BP highlights the importance of identifying and managing investment risk. He said rather than excluding investment in certain sectors – as some socially responsible investment funds do – pension funds should for look to factor environmental efficiency into their overall investment process.

“No-one who’s held BP funds in the last little while has done as well as they’d have hoped,” he added.

Overall returns at the Norwegian Government Pension Fund Global fell 5.4% in the quarter, driven by the widespread drop in global equity markets. Meanwhile, equity investments dropped 9.2%, which the fund attributed to European sovereign debt problems, funding challenges for banks and fears of an economic slowdown, particularly in Europe.

By. Charlotte Dudley

Source: Environmental Finance




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Anonymous on August 22 2010 said:
    When people ask me I tell them that Norway and Switzerland are the richest countries in the world. In fact I tell them that even if they don't ask me.The thing that infuriates me is that Norway could be richer: if Norway were richer it would help Sweden, where I live. I'm not talking about the lunch money they lost because they had too much BP stock, but their failure to manage their oil assets in an optimal manner.Still, one thing I am grateful for. Norway did not join the European Union. Maybe they are smarter than some people think.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play