Storebrand, a major Norwegian pension fund and life insurance firm, has divested from 19 fossil fuel companies to ensure “long-term stable returns” – as these stocks, it says, will be “worthless financially” in the future.
In total, it has pulled out of 13 coal extractors and six firms that are heavily exposed to oil sands – arguably the most energy intensive form of fossil fuel.
Its decision to divest comes after the publication of UK-based thinktank Carbon Tracker’s latest Unburnable Carbon report, which said some 60-80% of fossil fuel reserves need to be left in the ground if the worst effects of climate change are to be avoided.
The study, which Carbon Tracker produced alongside the London School of Economics’ Grantham Research Institute, therefore calls the bulk of reserves “unburnable”. It says investors that currently have high exposure to high-carbon assets are at risk of possessing “stranded assets” – a term used to describe financially worthless investment stocks.
Quoted in a press release, Storebrand head of sustainable investment Christine Tørklep Meisingset said the firm had gone down the divestment route “to reduce fossil fuel and CO2 exposure and ensure long-term stable returns.”
She added, “[As] the stated climate goals become reality, these resources are worthless financially, but it is also true that they do not contribute to sustainable development in the extent and the pace we want.
“Exposure to fossil fuels is one of the industry’s main challenges, and for us it is essential to work purposefully to take our share of responsibility.”
Meisingset went on to say that Storebrand has no dedicated ethical funds, but instead, applies the same “high standards” across all of its products. Its decision to divest was done on purely financial grounds.
Dutch bank Rabobank recently took the extraordinary step of enforcing a blanket ban on loans to firms involved with oil sands and fracking for shale gas. In both cases, it claimed the financial and environmental risks were too great for it to lend money.
Report says investing in fossil fuels is a ‘very risky decision’
What fossil fuel divestment can learn from apartheid
The UK canary in the carbon mine
Fossil fuel firms are failing to address the low-carbon imperative
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
Building a Career in Green Construction: Tips and Insights
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
6 Wastewater Management Tips to Reduce Water Pollution
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
What to Look for When Choosing an Eco-Friendly Locksmith
Flexible Return Policies Can Make Retail More Sustainable
Using Green Patents to Drive Sustainability & Eco-Friendly Designs
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?