Storebrand dumps Exxon Mobil and Chevron over climate change

Written by Adam Cadle

25/08/2020

Storebrand has dumped its investments in Exxon Mobil, Chevron and miner Rio Tinto in protest over their lobbying against the Paris Agreement.

Under Storebrand's new climate change policy, 27 companies have been excluded, five companies as a result of lobbying and a further 22 due to investments in activities related to coal and oil sands.

"We aim to be a leading provider of sustainable investment solutions," Jan Erik Saugestad, executive vice president of asset management at Storebrand said.

"With this strategy, we strengthen all the tools we as an investor have at our disposal - with a tightening of the criteria for exclusions, greater investments in solutions and a more active role vis-à-vis companies that can contribute to change. Climate risk is one of the biggest challenges facing the world and investors. Therefore, investors must move large amounts of capital to companies that deliver solutions to the climate crisis - and away from companies that do not take climate risk seriously."

Storebrand said it will have a net zero in greenhouse gas emissions from its investment portfolios by 2050 at the latest.

"As one of the Nordic region's largest asset managers, we are concerned about the effect of climate change on ecosystems, societies and economies, and thus our own portfolio companies. Fortunately, we also have significant influence, and can help accelerate decarbonisation in the global economy. Storebrand has worked with sustainable investments for 25 years, and with our new climate strategy we are stepping up our work and taking it two steps further. These measures are necessary to secure customers' investments for the future, Saugestad added.

Measures in Storebrand's climate strategy are as follows:

- Ensure that all investment decisions are in line with scientific consensus and the obligations of the Paris Agreement. Analyses from the United Nations Intergovernmental Panel on Climate Change (IPCC) will be used as a scientific basis for investment decisions.
- Exclude companies that actively lobby against the Paris Agreement and climate regulations.
- Exclude companies with revenues of more than 5% from coal and oil sands.
Strengthen active ownership and dialogue with oil and gas companies and high-emission industries, to stimulate ambitious climate practices and a faster transition to renewable energy.
- Strengthen active ownership and dialogue with companies involved in deforestation - directly or through their supply chain.
- Invest more in solution companies, ie companies that can contribute to solutions to the climate crisis.
- Further develop climate risk analyses of the portfolios and report on these analyses annually.
- Open and frequent reporting on development.
- Continue to offer customers a broad portfolio of sustainable and fossil-free funds.

The full list of companies excluded as a result of the new climate strategy can be viewed here

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