The Global Pension Fund of the Government of Norway, the largest sovereign fund in the world, has become the first socially responsible investor of Repsol with a 1.5% stake in the company´s capital.
According to the data of 2018 year end of the fund managed by Norges Bank Investment Management (NBIM), an entity attached to the Norwegian central bank, the institution had a package of 22.96 million shares of the Spanish company, valued at about 330 million euros.
The fund reaffirmed its commitment to Repsol in the final stretch of the year, where it increased its stake in the oil company with a 3.24 million shares package.
Through this operation, the Pension Fund of the Government of Norway becomes one of the relevant shareholders within the capital of Repsol together with Sacyr (7.87%), Blackrock (4.63%) and Caixabank, which holds a 3,58% although last year the bank announced its decision to gradually sell its stake in the oil company, with the aim of exiting its shareholding this year.
Repsol’s commitment to low-emission businesses, with the launch in 2018 of its new ‘roadmap’ through 2020, has whetted the appetite for the company of socially responsible investors, such as the Norwegian sovereign fund.
In its new strategy, the company chaired by Antonio Brufau reaffirms its commitment in the fight against climate change and targets three specific goals: increasing shareholder remuneration; profitable business growth (‘Upstream’ and ‘Downstream’); and development of new businesses linked to the energy transition.
In the latter area, Repsol plans to allocate 2,500 million euros until 2020 to low CO2-emissions energy projects and the development of new long-term business opportunities.
The goal of the company led by Josu Jon Imaz is to advance the energy transition and reduce emissions from Repsol’s operations and products, in line with the company’s commitment to fight climate change that was adopted at the Paris Summit (COP21).
In line with its commitment to the fight against climate change, Repsol set a goal of reducing its CO2 emissions by 2.1 million tons in 2020 compared to 2016, even in a growth phase like the one the company faces. Recently a new goal has been set: a reduction of CO2 emissions equivalent to 3 million tons for the period 2018-2025.
Repsol’s commitment to renewables
In its commitment to the renewable businesses, in early November Repsol secured the purchase of Viesgo´s unregulated low-emission electricity generation businesses and its marketer to become a relevant player in the Spanish electricity market, where at closing of February it already served some 810,000 customers in Spain.
With these assets, the group strengthened its position as a multi-energy operator, with a total installed capacity of 2,952 megawatts (MW) -2,352 MW from this operation, plus 600 MW from its current cogeneration plants.
In August 2018, it also acquired the Valdesolar photovoltaic project of 264 MW planned in the municipality of Valdecaballeros (Badajoz), which is in the administrative processing phase. The oil company is also participating in the construction of one of the world´s largest floating wind farms, located off the coast of Portugal at 20 kilometers from Viana do Castelo, with an installed capacity of 25 MW.