Norway’s $1tn oil fund has sold out of some of the biggest names in commodities and utilities including Glencore, Anglo American and RWE after the world’s largest sovereign wealth fund decided they breached its guidelines on the use of coal. Exclusions by one of the world’s biggest shareholders — the fund owns on average almost 1.5 per cent of every listed company in the world — are often closely followed by other investors.
In the short term, coal still supplies around a quarter of the world's primary energy and two-fifths of its electricity. However, the well-regarded fund’s decision is expected to have a more gradual effect on investor sentiment in the long-term.
'Pulling investments from the oil sands and claiming it's for climate change reasons is more about publicity than fact' — Cenovus Energy CEO