The parent company of Nordea Asset Management has banned fund managers from investing in the controversial Dakota Access oil pipeline following a site visit in December.
Energy Transfer Partners (ETP) is the main company that oversees the project, the Financial Times reports.
The asset manager has also banned investment in Sunoco Logistics, which is in the process of buying ETP, and Phillips 66, which owns a minority stake in the project.
The decision is based on environmental and reputational risk.
Environmentalists and the Native American Standing Rock Sioux tribe have been protesting the $3.7bn pipeline, which would transport oil from the Bakken oilfields in North Dakota to Illinois, due to concerns it would contaminate drinking water and damage sacred burial sites.
Nordea Wealth Management’s head of sustainable finance visited the site late last year and concluded that the pipeline route needed to be moved and consultation with the Standing Rock tribe improved.
US pension funds have already been under pressure to divest from the project. Two Californian pensions funds, which have around $100m invested in ETP, face public petitions as well as a bill from the state assembly that would require them to divest.