August 24, 2020 Read More →

Norwegian investor divests from fossil fuel, petrochemical giants

Urdu Point:

Norwegian investor Storebrand Asset Management said Monday it had divested from fossil fuel and petrochemical giants because they lobbied against regulations designed to tackle the climate crisis and speed the greening of the global economy.

The medium-sized institutional investor, with $91 billion (77 billion euros) under management, has unloaded holdings in US oil and gas majors Chevron and ExxonMobil, German chemical company BASF, and British-Australian mining and metals giant Rio Tinto, chief executive Jan Erik Saugestad confirmed in outlining his firm’s new policy.

“We have already implemented this climate strategy and divested from those companies,” he told AFP in an interview.

“We will now exclude companies that actively work against regulations and policies that are required to reach the climate goals,” he said, referring to targets set under the Paris Agreement.

Total has more than doubled its renewable energy capacity — from 3 gigawatts to 6.6 gigawatts — in the last year, and plans to install an additional 4.6GW by 2023.

Shell has probably completed more renewables deals than any other energy major.

But both energy giants continue to invest 90 percent of their capital to develop planet-warming fossil fuels, according to a recent analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) that predicts the companies will fall “well short” of their own sustainable investment targets.

[Muhammad Irfan]

More: Norwegian Investor Divests From Oil & Gas Majors Over Lobbying

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