Kommunal Landspensjonskasse, Oslo, divested $58 million from equity and bonds of companies involved in oil sands, the Norwegian pension fund said Monday on its website.
In efforts to show to other investors that oil sands should not be part of the energy supply, KLP exited the sector entirely, eliminating its exposure to Cenovus Energy Inc.; Suncor Energy; Imperial Oil Ltd., whose parent is ExxonMobil; Husky Energy Inc.; and PJSC Tatneft.
KLP's holdings were valued at $33 million for equity and $25 million for bonds.
"By excluding these companies, KLP continues to align its investments so that they contribute to a movement towards a low-emission society," said Sverre Thornes, CEO of the 737 billion Norwegian kroner ($81 billion) investor said in a news release Monday.
KLP intends to replace the operations of these companies by investments in clean-energy alternatives through renewable power such as solar and wind, battery storage and the growth of electric vehicles.
KLP also reduced its coal exposure earlier this year. In May, the investor divested 32 billion Norwegian kroner from equity and bond investments in 46 companies involved in coal-based activities.
By eliminating investments in coal and oil sands, Mr. Thornes said in the release, "we are sending a strong message on the urgency of shifting from fossil to renewable energy."