Storebrand starts fossil-free bond fund worth $1.3bn

On 12 December, Norway’s biggest private pension fund, Storebrand, has launched a $1.3bn fossil-fuel-free fund programme.

The Norwegian firm already run $2.1bn worth of equity funds which have no investments in fossil fuels, according to Reuters.

However, the now combined $4.3bn only accounts for 4.25% of Storebrand’s total $80bn worth of assets under its management.

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“We’re building a track record in managing these low-carbon solutions… We aim to inspire others to follow suit,” Jan Erik Saugestad, CEO of Storebrand Asset Management informed Reuters.

The company is also reducing its overall exposure to oil and gas, as well as encouraging investors to do the same.

Storebrand Global Kreditt IG, the dubbed bond programme, is to be mostly invested into corporate bonds.

These bonds will be issued by financial institutions and industrial companies in developed nations.