Thursday, 8 September 2016

Norway's Wealth Fund Dumps Duke Energy Over 'Risk of Severe Environmental Damage'

Norway’s central bank announced on Wednesday that the Norwegian Government’s Pension Fund, worth $900 billion, will no longer invest in Duke Energy.

This decision is the result of an investigation by the Council on Ethics for the pension fund, which found that Duke Energy’s failure to adequately respond to its leaking coal ash impoundments in North Carolina constituted “an unacceptable risk of severe environmental damage.”

Duke Energy coal ash spill into the Dan River near Eden, North Carolina in February 2014. The spill was the third largest coal ash spill in U.S. history. Waterkeeper Alliance

Based on its assessment, the council recommended that Duke Energy be excluded from the fund on ethical grounds. Nearly 4.7 million Duke shares and bonds, valued at $545 million, have been sold by the Norwegian Pension Fund.

In May 2015, I presented data and information to the Norwegian Parliament and Council on Ethics about the extensive and ongoing water pollution from Duke Energy coal ash ponds, advocating that they sell Duke Energy stocks for ethical reasons.

Waterkeeper recently sent a data packet to Norway emphasizing that Duke had not stopped ongoing leaks of heavy metals into drinking water supplies and plans to leave 70 percent of its coal ash in leaking ponds in North Carolina.

I am thrilled that the Council on Ethics determined that Duke’s abysmal performance and severe environmental risk still posed by Duke Energy’s leaking ash ponds warranted a special divestiture.

Duke Energy joins the list of many companies whose performance is so unacceptable to the Council of Ethics that they are black-listed as unsuitable for investment by one of the world’s largest sovereign wealth funds.

Waterkeeper Alliance will continue to present to major institutional shareholders of coal companies to inform them of the unacceptable environmental risk of leaking ash ponds into drinking water supplies. Until this industry finally stops its recalcitrant and illegal behavior, we will continue to advocate for divestment from these major polluters all over the world.

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