​Storebrand continues to reduce exposure to coal

Norwegian life insurance and pension provider Storebrand has announced it is taking further steps to reduce its exposure to fossil fuels. The company has recently divested shares worth 750 million NOK in 22 coal companies bringing the total number of companies excluded due to coal to 40, up from the previous 18.

– Removing long term investments from exposure to coal makes both environmental and financial sense, says Head of Sustainable Investments in Storebrand Matthew Smith.

Climate change is the most pressing and comprehensive risk factor within sustainable investments. Two-thirds of proven fossil fuel reserves cannot be exploited if the world is to reach the goal of limiting global warming to 2 degrees, according to the International Energy Agency (IEA). Coal is one of the most prevalent and polluting forms of energy and is therefore a logical focus point for climate action says Matthew Smith

According to internal calculations, Storebrand has earned between 80-90 million NOK since 31.12.2013 by reducing its exposure to coal.

Changing demands

Storebrand was an early mover, and began its coal divestment program in 2013. Over the last couple of months Storebrand has intensified its efforts, and has now implemented the following sector exclusions

• In the Energy sector, all companies with coal as a primary activity
• In the Materials sector all companies with 30 percent or more revenue from coal extraction
• In the Utilities sector all companies with 30 percent or more revenue from coal based power production

For the companies close to 30% in the Utilities sector, historical data on generation mix has been used to identify companies that have started to change their business model towards a more sustainable future. We have sought to reward companies exhibiting a positive trend away from coal, as for us a company's long term strategic direction is one of the most important factors to consider says Smith.

– Storebrand's main aim is to provide its customers with the best possible pension when they retire. For many of our customers this reality is 30-40 years away, therefore it is important to think long-term in our management of their pension funds. We need to contribute towards a good pension, and a more sustainable world in which to enjoy that pension, says Matthew Smith.

About Storebrand

The Storebrand Group is a leading player in the Nordic market for pensions, long-term savings and insurance. Storebrand operates a total of 1.8 million customers in Norway and Sweden. We make it possible for customers to take the best financial choices adapted to their different needs and situation. 

Contact: 

Matthew Smith, Head of Sustainable Investments: matthew.smith@storebrand.com