Norwegian pension fund Storebrand has excluded ten companies in the utilities sector as a result of a decision to further reduce its investments in coal.

Storebrand said that it was continuing its strategy of reducing its exposure to fossil fuels and CO2 emissions sector-by-sector.

Christine Torklep Meisingset, Storebrand head of sustainable investments, said: "As a savings and pensions provider our goal is to ensure long-term positive returns for our customers.

"Part of that goal is achieved by reducing the risk in our portfolios, and climate change is the most comprehensive risk to sustainability. Therefore we have decided to further reduce our exposure to coal, this time in the utilities sector."

The pension fund has chosen to exclude companies with the highest share of power generation from coal, resulting in the exclusion of 10% of the sector.

An exception has been made for those companies that have an above average share of power generation from renewable sources of 4%, which the pension fund describes as "awfully low".

Last year, Storebrand decided to divest from 13 coal and six oil sands companies after its analysis of the energy sector.

To date, 23 coal companies have now been excluded from all of Storebrand's portfolios.

"We will continue to have companies in our portfolios that have a share of their business related to coal, but we have removed those with the largest share in arguably the two most coal intensive sectors," Meisingset said.

First published 29.01.2014

monique_simpson@wilmington.co.uk