Norwegian pension fund sells stakes in 4 Indian firms, 23 others

Norwegian pension fund KLP has sold entire stake in at least four Indian companies - NTPC, Coal India, Tata Power and Reliance Power - as well as 23 others worldwide as it looks to embrace more climate-friendly firms. The move is part of the fund's strategy to pull out of companies that derive a substantial proportion of their revenues from coal. "KLP's first evaluation of coal holdings resulted in divestment of equities and bonds in 27 companies for a total amount of 386 million Norwegian kroner (NOK)," the fund said in a statement on Monday. The fund has exited from four Indian entities -Coal India, NTPC, Tata Power and Reliance Power. Among others, KLP has sold stakes in American Electric Power Co, China Coal Energy Comp, CLP Holdings Ltd, Datang International Power Generation Comp, Exxaro Resources Ltd, Peabody Energy Corp and Turquoise Hill Resources Ltd.

In November, KLP had announced plans to invest an additional NOK 500 million in the development of new renewable energy capacity.

At the same time, KLP is pulling out of companies that derive a substantial proportion of their revenues from coal. KLPs first evaluation of coal holdings resulted in divestment of equities and bonds in 27 companies for a total amount of 386 million Norwegian kroner.

"This is the first step in an effort to purge our investments of coal. We have attempted to establish a sensible balance between investments in new renewable energy production, divestment of coal companies and the exertion of shareholder influence," the statement said.

The next step would be to press companies to move in a more climate-friendly direction and reduce their carbon emissions.

"Companies with substantial coal-based operations which prove unwilling or unable to change, will run the risk of being excluded," Jeanett Bergan, head of responsible investment at KLP, said.