Australian pension fund NGS Super on Thursday said it had sold all its holdings in oil and gas companies, worth A$191 million ($133 million), in a drive to achieve a portfolio with net zero carbon emissions by 2030.
It is the first of Australia's 12 low-fee "industry" pension funds to totally divest from fossil energy companies.
Most of NGS Super's oil and gas holdings were in Australia's top two independent gas producers, with A$75 million worth of shares in Woodside Energy Group (WDS.AX) and A$50 million in Santos Ltd (STO.AX).
"We're divesting from oil and gas companies, in particular in the Australian context Santos and Woodside, as we've identified those companies as being at risk of becoming stranded in the future as the world decarbonises," NGS chief investment officer Ben Squires said in a video on the fund's web site.
Other companies it sold out of included ConocoPhillips (COP.N), Hess Corp (HES.N) and Beach Energy (BPT.AX), expanding its fossil fuel restrictions to all oil and gas producers and explorers.