Norway’s $860 billion (£604bn) sovereign wealth fund, the biggest in the world, has unveiled a list of coal-related companies that will be excluded from its portfolio.
The 52 organisations include American Electric Power, China Power International Development, Tata Power, UK’s Drax Group, Japan’s Hokkaido Electric Power and Australia’s New Hope Corporation.
It is in line with its new ethical guidelines, which state mining companies and power producers which themselves or through entities they control derive 30% or more of their income from thermal coal or base more than 30% of their operations on thermal coal could be excluded from the fund.
Norges Bank Investment Management, the unit of Norway’s central bank that manages the fund stated: “We have contacted all the companies that are assessed for exclusion and given them the opportunity to provide data and facts on future strategies related to coal. It has been important for us to give the companies an opportunity to give their input before they were excluded.”
The fund is fuelled by Norway’s state oil revenues.
Norway’s Finance Ministry previously proposed to scale up investment in clean energy as part of its plans to restructure the nation’s sovereign wealth fund.