South Korea's 872.5 trillion won ($774.1 billion) National Pension Service will implement a strategy restricting investment in the coal mining and power generation industries.
The fund management committee, led by Health and Welfare Minister Kwon Deok-cheol, in a news release Friday said the Jeonju-based National Pension Fund will cease investments related to the construction of coal-fired power plants both at home and abroad.
Longer term, a new clause on investment restrictions will be added to the National Pension Fund's operating guidelines, working toward a negative screening strategy targeted at industries and business groups that are "evaluated negatively from the perspective of ESG," the news release said.
"We plan to conduct related research services and institutionalize implementation plans," establishing a step-by-step action plan during the second half of 2021, a translation of the announcement said.
NPS' current exposure to the coal mining and power generation industries, and whether the move includes the divestment of such assets, could not be confirmed.
