Continuing its sector-by-sector approach to reducing exposure to fossil fuels and CO2 emissions, Storebrand further reduces investments in coal by excluding ten companies.
As a result of the latest analysis of the
Utilities sector, Storebrand has chosen to exclude companies with the largest
share of coal in electricity production.
– As a savings and pensions provider our goal is to ensure long-term positive returns for our customers. Part of that goal is achieved by reducing the risk in our portfolios, and climate change is the most comprehensive risk to sustainability. Therefore we have decided to further reduce our exposure to coal, this time in the Utilities sector, says head of Sustainable Investments at Storebrand, Christine Tørklep Meisingset.
10 percent of the sector will now be excluded; those companies with the highest share of power generation from coal. An exception has been made for those companies that have an above average share of power generation from renewable sources (above 4%), as this is one method to increase the relative share of renewables in our portfolios. This brings the total to 23 coal companies excluded from all of Storebrands portfolios.
– Given the global challenge that climate change represents, an average renewable share of 4% throughout the sector is awfully low. It is especially important that the largest utility companies begin the change to a more sustainable model, to more power generation from renewable sources. One way in which Storebrand can contribute, is by investing more in the best companies, and excluding the worst.
Storebrand analyse on a sector by sector basis, while also conducting cross sector analyses of sustainability themes – in order to exclude the least sustainable companies.
– Last summer, we reduced exposure to coal in the Energy sector – and we have now continued by reducing exposure in the Utilities sector. During the first half of 2014, we will also be analyzing the Materials sector, and considering further reducing our exposure to coal.
– We will continue to have companies in our portfolios that have a share of their business related to coal, but we have removed those with the largest share in arguably the two most coal intensive sectors, says Meisingset.
Exclusions are valid for all of Storebrands portfolios.