Norway’s largest manager of pension funds, KLP, is totally divesting from coal companies and instead investing about $75 million in renewable energy companies, reports NewsinEnglish.no.
KLP is Norway’s second largest investment company, ranking only behind the country’s “oil fund.”
The decision means KLP will drop 20-30 companies from its portfolio of about 3,000 companies.
“We’re quite convinced that we will manage to deliver the same returns in the future without those from coal companies,” said KLP’s chief executive Sverre Thornes.
Thornes said the divestiture is based on a concern for the environment and climate change. KLP is not, however, pulling out of oil and gas companies at this time because it believes such a sell-off would adversely affect future pension fund returns. Norway, itself, is a major producer of oil.