KLP adopts roadmap to reach net zero by 2050

The board of Norwegian pension fund KLP has approved a roadmap to reach net-zero emissions by 2050, outlining how the fund will assess each investment to ensure its emission path is compatible with a 1.5 degree target.

As part of the roadmap, KLP will set a specific short-term climate target for its portfolio and apply best practice in relation to assessment methods and the use of climate data.

The fund explained that by setting a climate goal for its investment portfolio it is seeking to influence society to succeed with the goals outlined in the Paris Agreement.

It also emphasised that transparency around companies' net-zero emission targets is very important, stressing that stakeholders must understand how the fund is actually working towards a 1.5 degree target.

The roadmap, which will be published "within a few weeks", is therefore expected to help address this need, alongside periodical reporting from the fund on the results of its responsible investment efforts.

KLP director of corporate social responsibility, Heidi Finskas, commented: "When KLP sets a climate goal, we do it for, and on behalf of, our owners who are municipalities and health trusts.

“Then our owners can be confident that the pension money contributes to the world reaching the climate goals.”

KLP previously announced plans to support the 1.5 degree goal, and recently announced a string of exclusions from companies with connections to Israeli Settlements in the West Bank, as well Myanmar-linked Adani Ports and Special Economic Zone, as these breached its responsible investment guidelines.

    Share Story:

Recent Stories


Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.