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Pension fund manager KLP announce divestment from companies that "derive a large proportion of their revenues from coal"
Norway’s largest pension fund manager, KLP, announced in November that it has decided to invest NOK 500 million more in increased renewable energy capacity. At the same time, it is pulling out of companies that derive a large proportion of their revenues from coal. “KLP is doing this because it wishes to contribute to the urgently needed switch from fossil fuel to renewable energy," according to a company statement.
Right now KLP has invested approximately 19 billion NOK in renewable energy, which is about 5 percent of its assets; and 7 billion NOK is invested in fossil energy companies, said Eli Bleie Munkelien, vice president, KLP Corporate Responsibility and Corporate Governance. “Our goal is to increase investments in renewable energy, but it is not linked to the total investment capital,” she said. Last year KLP also established a partnership with Norfund for direct investment in renewable energy and finance, according to the company.
Withdrawing from companies heavily invested in coal is not anticipated to have any effect on returns, according to the company, but ending investments in oil and gas companies might have had an impact.
Company officials are hopeful KLP’s decision will prompt other companies to act. “KLP will continue to be an active and engaged owner of the companies in which we invest, with a clear ambition to influence them to take responsibility to lower greenhouse gas emissions,” said Munkelien. The mutually-owned Norwegian insurer and asset manager oversees local authority pensions, with assets of approximately NOK 280bn (€33bn).coal divestment energy briefing KLP Norway penison funds