Norway’s largest pension fund KLP has announced it will divest from companies that derive their income from oil sands.
As part of the decision, KLP, which manages more than $81 billion (£66bn) in assets, will exclude Cenovus Energy, Suncor Energy, Imperial Oil (69.9% owned by ExxonMobil), Husky Energy and Tatneft PAO.
It will also no longer invest in companies that derive more than 5% of their revenue from such firms as part of its efforts towards contributing to a low emission economy.
The pension fund previously had a 30% threshold for oil sands revenues.
CEO Sverre Thornes said the commitment builds on the company’s recent move to go coal-free as both industries represent “highly risky and environmentally damaging operations” which can now be replaced with clean energy alternatives.
Mr Thornes added: “By going coal and oil sands free, we are sending a strong message on the urgency of shifting from fossil to renewable energy.”
KLP said it wants to send a signal to the markets that oil sands should not form part of the current and future energy supply.