– This full exit from oil sands is great news for KLP’s customers as we continue to reduce our exposure to companies involved in an activity that is not aligned with a two-Degree Celsius temperature target. By excluding these companies, KLP continues to align its investments so that they contribute to a movement towards a low-emission society, says CEO Sverre Thornes.
KLP and KLP funds will now exclude companies that have more than five percent of their revenue coming from oil sands-based companies. This builds on our recent move to go coal-free. Together, these industries represent highly risky and environmentally damaging operations which can now be replaced by clean energy alternatives through renewable power like solar and wind, battery storage, and the growth of electric vehicles.
– As the largest pension fund in Norway, KLP also wants to send a signal to the markets that oil sands should not form part of the current and future energy supply. We hope that other large asset managers will follow this example. By going coal and oil sands free, we are sending a strong message on the urgency of shifting from fossil to renewable energy, added Thornes.
Divesting from oil sands worth US$58 million
As part of this decision, KLP will exclude Cenovus Energy, Suncor Energy, Imperial Oil (69.6% owned by ExxonMobil)1, Husky Energy and Tatneft PAO. The equity holdings divested were valued at over 305 million NOK (US$33 million) plus 229 million NOK in bonds (US$25 million). As with the coal threshold, we have gone from removing companies with 30% of their business coming from oil sands to 5%. This may well set a new investor standard.
For further information
Sverre Thornes, CEO KLP. +47 977 44 007
Marte Storaker, Advisor Responsible Investments, KLP. +47 414 69 714
Sissel Bjaanæs, Director of information, KLP. +47 932 56 350