The Church of England Commissioners and Pensions Board say they are disinvesting from fossil fuels companies that have not done enough to reduce greenhouse gas emissions.
Commenting on the decision, the Archbishop of Canterbury, Justin Welby, said that the Church had a responsibility to act.
He said that the companies were not doing enough to align with the Paris Agreement and that more needed to be done to reduce carbon emissions.
"The climate crisis threatens the planet we live on, and people around the world who Jesus Christ calls us to love as our neighbours," he said.
"It is our duty to protect God's creation, and energy companies have a special responsibility to help us achieve the just transition to the low-carbon economy we need.
"We have long urged companies to take climate change seriously, and specifically to align with the goals of the Paris Climate Agreement and pursue efforts to limit the rise in temperature to 1.5°C above pre-industrial levels.
"In practical terms that means phasing out fossil fuels, investing in renewables, and plotting a credible path to a net-zero world. Some progress has been made, but not nearly enough.
"The Church will follow not just the science, but our faith – both of which call us to work for climate justice."
The announcement follows a report from the Church of England's National Investing Bodies (NIBs) which concluded that although some companies have made significant progress in reducing carbon emissions, none have gone far enough.
The Church Commissioners for England, which manages the Church of England's £10.3bn endowment fund, announced that it would exclude all remaining oil and gas majors from its portfolio.
On the exclusion list are companies "primarily engaged in the exploration, production and refining of oil or gas, unless they are in genuine alignment with a 1.5°C pathway, by the end of 2023".
Companies affected include BP, ExxonMobil, Shell and Total and Occidental Petroleum, Pemex, Repsol, Sasol, Shell, and Total.
"The decision to disinvest was not taken lightly," said Alan Smith, First Church Estates Commissioner.
"Soberingly, the energy majors have not listened to significant voices in the societies and markets they serve and are not moving quickly enough on the transition.
"If any of these energy companies come into alignment with our criteria in the future, we would reconsider our position. Indeed, that is something we would hope for."
