FT: “Norway’s largest pension fund has vowed to drop its holdings in coal miners, intensifying pressure on the coal industry from global investors.”
“The NKr470bn ($70bn) KLP pension scheme, which manages the retirement assets of Norway’s public sector workers, will blacklist companies that derive more than 50 per cent of their revenues from coal-based activities.
The pension fund expects the withdrawal to lead to the sale of shares and bonds worth approximately NKr500m. It will publish a list of the companies affected on December 1.
KLP’s decision to drop coal companies follows similar moves in the past two months by Australia’s biggest public sector pension scheme, Local Government Super, the second Swedish national pension fund, AP2, and the Rockefeller Foundation.
These investors join a list of more than 800 institutions that have committed to reducing their exposure to coal and other fossil fuel-driven companies over concerns that governmental action to combat climate change has made these investments more risky.
….The KLP review was prompted by the mayor of a Norwegian municipality requesting that the pension fund consider withdrawing from coal, oil and gas-focused companies, provided this did not affect long-term returns.
After a six-month deliberation, the pension fund decided to remain invested in oil and gas companies, which play an important role in the Norwegian economy, but pull out of coal companies.
….The pension scheme’s review was also prompted by the Norwegian Ministry of Finance’s decision in February to assess whether the country’s $885bn sovereign wealth fund should stop investing in coal and petroleum. The oil fund is expected to publish its decision on fossil fuel divestment in the next two weeks.”
