South Korea’s National Pension Service (NPS), the third-largest public pension fund globally, will now include climate change as part of its investment decisions.

That’s according to the country’s welfare ministry, with the pension fund previously concentrating on corporate governance issues like dividend policies and rule violations.

The ministry confirmed that a panel will oversee the NPS’ fund management policies, which will determine how the fund engages with companies regarding climate change.

This follows its pledge made in May 2021 to limit investments in coal mining and coal-fired power to align with global carbon reduction goals. Although guidelines to restrict these sorts of investments are still yet to be enforced.