Tuesday 8 October 2019

Norway’s largest pension fund KLP divests from oil sands

Norway's largest pension fund KLP has announced it will divest from companies that derive their income from oil sands.

As part of the decision, KLP, which manages more than $81 billion (£66bn) in assets, will exclude Cenovus Energy, Suncor Energy, Imperial Oil (69.9% owned by ExxonMobil), Husky Energy and Tatneft PAO.

It will also no longer invest in companies that derive more than 5% of their revenue from such firms as part of its efforts towards contributing to a low emission economy.

The pension fund previously had a 30% threshold for oil sands revenues.

CEO Sverre Thornes said the commitment builds on the company's recent move to go coal-free as both industries represent “highly risky and environmentally damaging operations” which can now be replaced with clean energy alternatives.

Mr Thornes added: “By going coal and oil sands free, we are sending a strong message on the urgency of shifting from fossil to renewable energy.”

KLP said it wants to send a signal to the markets that oil sands should not form part of the current and future energy supply.