The Norwegian Pension Fund – the largest reserve fund in the world – stopped believing in oil and gave up assets in companies that are engaged in exploration and production of raw materials. This was a big step towards greening the investment giant, writes Bloomberg.
The Pension Fund began to abandon oil and gas three years ago. Then the main goal was to diversify assets and make Norway, which is one of the key gas suppliers in the world and a major player in the oil market, less dependent on the oil and gas sector.
The current decision to completely abandon investments in companies from this industry is also associated with financial losses – by the end of 2020, oil and gas companies included in the portfolio of the Norwegian Reserve Fund brought him a loss of $ 10 billion.
However, overall, 2020 has become one of the best in the history of the organization. The total return on his portfolio was $ 123 billion. In particular, the money was brought by the bet on the technology sector, whose shares grew rapidly during the crisis. Now, instead of oil and gas, the fund’s management plans to increase investments in renewable energy sources. Their share of the $ 1.3 trillion fund should be about 1 percent.