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Report: more climate change recognition, action among major investors

Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM), presents details from the annual report of the Norwegian Government Pension Fund in Oslo on February 27, 2018.
Presentation of an annual report on Norway's sovereign wealth fund in Oslo on February 27, 2018. The fund announced it would decarbonize its portfolio last year. Photo: Ole Berg-Rusten/AFP via Getty Images

Since the Paris Agreement's adoption in 2015, a majority of the world's largest investors have begun to take action on climate change. According to a new report, the 2016–2017 year showed an average improvement in decarbonization within all major investor categories except pension funds.

The big picture: As more countries act to reduce carbon emissions, large institutional investors are becoming increasingly aware that high-carbon assets, such as oil firms and coal mines, may become worthless in the long run, driving them to dedicate a larger portion of their assets to renewable energy.