Chief investment officer Matt Whineray said 40 percent of all super fund investments would be low carbon as a result of the changes.

The aim was to reduce risk by cutting exposure to the companies expected to be most affected by climate change.

"We think that climate change represents a material risk, one that is not being properly priced by the markets," he said.

"So we have done something about that by reducing exposure to companies that are most exposed to this.

Mr Whineray said the change was being made for commercial reasons, not as a result of political pressure.

"This is clearly not an ethical decision at this stage, it is an investment decision.

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