Sustainable Business

Norway wealth fund to vote for shareholder climate policy initiative at Caterpillar AGM

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A general view of the Norwegian central bank, where Norway's sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. REUTERS/Gwladys Fouche

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OSLO, June 4 (Reuters) - Norway's $1.35 trillion sovereign wealth fund, the world's largest, said it would support a shareholder climate policy initiative at the Caterpillar (CAT.N) annual general meeting on June 9.

"The board should account for material sustainability risks facing the company, and the broader environmental and social consequences of its operations and products," the fund said on its website on Friday.

The management of the construction machinery and equipment company is calling on shareholders to reject the proposal.

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The fund will also vote against the re-election of CEO Jim Umpleby as chairman of the board, as the fund is against a CEO being chair of the board of the same company, it said.

The fund will vote against a shareholder proposal to report on diversity and inclusion efforts, as per Caterpillar's management recommendation.

The Norwegian sovereign wealth fund had a 0.86% stake in Caterpillar worth $850 million at the end of 2020, according to fund data.

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Reporting by Gwladys Fouche, editing by Terje Solsvik

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