The Troll gas platform off the coast of Norway. The change in strategy will affect 1.2% of the wealth fund’s equity holdings, worth about £5.7bn.
Credit: Marit Hommedal/AP

The world’s largest sovereign wealth fund, which manages $1tn (£770bn) of Norway’s assets, is to dump investments in firms that explore for oil and gas, but will still hold stakes in firms such as BP and Shell that have renewable energy divisions.

The Government Pension Fund Global (GPFG), whose assets exceed those of rival sovereign wealth funds such as China’s, said it would phase out oil exploration from its “investment universe”.

The strategy shift, on the back of advice from the country’s central Norges Bank, will affect 1.2% of its equity holdings, worth about 66bn Norwegian krone (£5.7bn).

GPFG said the decision was motivated by a desire to protect the Norwegian economy by reducing exposure to oil price falls, rather than climate concerns.

It will retain stakes in fossil fuel companies as long as they have some involvement in renewable energy. Its stakes in large firms with […]