Kommunal Landspensjonskasse, Oslo, will exclude companies that derive revenue from oil sands, the 589 billion Norwegian kroner ($70.8 billion) pension fund said on its website Thursday.
Companies that generate 30% or more of revenues from oil sand extraction and companies that have combined revenue exceeding 30% from oil sand and coal extraction will be removed from KLP's investments. The pension fund for public-sector employees will publish the list of companies on June 1, 2018. The current size of investments in those companies was not available.
Investments in renewable energy will replace oil sand and coal investments. KLP started excluding companies from its portfolio that derive 30% of their revenue from coal in 2014.
"The decision was made following a review of the climate and environmental risk related to unconventional oil and gas extraction. The climate and environmental impacts of oil sand extraction are as great as those for extracting coal. KLP will therefore extend the product-based exclusion criteria to oil sand," Anne Kvam, head of responsible investments at KLP, said in the release.
"By also excluding companies in these sectors, KLP continues to direct its investments toward a low-emission society," CEO Sverre Thornes added in the release.
A spokesman could not be reached to provide additional details.