Nordic insurance giant KLP divests from oil sands

(Business Green, 7 Oct 2019) Norway's largest pension fund announces the exclusion of five companies operating in oil sands from its portfolio.

Norway's largest pension fund KLP, which manages more than $81bn of assets, is divesting from oil sands in a move designed to reduce its exposure to companies betting against the delivery of a world where warming is kept below 2C.

KLP and KLP Funds said it would be divesting from five companies: Cenovus Energy, Suncor Energy, Imperial Oil, Husky Energy, and Tatneft PAO. It said the divestment represented a shift in capital of 5m NOK (US$33m) plus 229m NOK in bonds (US$25m).

Any firms deriving more than five per cent of their revenue from oil sands-based companies will be excluded from its portfolio going forward, KLP added.

Oil sands, often known as tar sands, extract oil that is particularly heavy and polluting compared to other crude oil sources. Extracting tar sands is an energy intensive process, which also requires a lot of water, and as such the process is fiercely opposed by climate campaigners.

CEO Sverre Thornes said KLP wanted to "send a signal to the markets" that oil sands should not be part of the energy supply.

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Business Green, 7 Oct 2019: Nordic insurance giant KLP divests from oil sands