COPENHAGEN, Sept 3 (Reuters) - Danish pension fund MPPension said on Tuesday it would sell its stakes in 10 of theworld's biggest oil firms as it seeks to divest major sources ofcarbon emissions from its portfolio.
MP Pension said it would sell its stakes in ExxonMobil, BP, Chevron, PetroChina,Rosneft, Royal Dutch Shell, Sinopec, Total,Petrobras and Equinor.
"The divestment happens because MP assesses that thecompanies' long-term business models are incompatible with theclimate goals set in the Paris Agreement," it said in astatement.
Almost 200 nations agreed in Paris in 2015 to limit theglobal average temperature rise to well below 2 degrees Celsiusabove pre-industrial times. Current policies put the world ontrack for at least a 3C rise by the end of the century.
The divestment amounts to a total of 644 million Danishcrowns ($96.24 million), or around two thirds of MP Pension'sequity holdings in oil.
MP Pension said its decision was not only based on a desireto contribute to the green transition, but also on its beliefthat the companies cannot deliver a return on a level with thebroader market in the coming years.
"Demand for oil will fall as the green transition gathersspeed," said MP Pension's investment chief Anders Schelde.
MP Pension said four of the companies - BP, Royal DutchShell, Total and Equinor - had shown signs of progress, whilethe remaining six had made little headway in moving to greenerenergy.($1 = 6.6914 Danish crowns)(Reporting by Stine Jacobsen, editing by Terje Solsvik andLouise Heavens)
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