A Norwegian pension giant has announced the launch of a €1.1 billion (£0.9bn) fossil free fund.

Storebrand, Norway’s largest private investor with a 34% share of its pension market, says the fund does not invest in companies where more than 5% of revenue comes from fossil fuel production and distribution.

It is also calling on the government to cut the nation’s exposure to coal and other fossil fuels.

Harald Martens Holm, Communications Manager for Sustainability said: “Now you can put your money into a fund that invests in just the companies that are pushing forward the ‘green shift’ – without your money being less worthwhile for that reason.

“Clean fossil-free funds are nothing new in themselves. But this is the first time we can say that this fund will give you the same return as a so-called index fund but at the same time, you get a lot of sustainability on your purchase.”

Earlier this year New York State’s pension fund joined a multi-trillion dollar decarbonisation portfolio.