Norges Bank Investment Management (NBIM), managing Norway’s sovereign wealth fund, has unveiled an ambitious 2025 climate action plan, recognizing the intrinsic link between sustainable development and long-term financial returns. The plan aims to position portfolio companies for net zero emissions by 2050, addressing climate change as a significant financial threat while highlighting investment opportunities in a low-carbon economy.
NBIM’s multifaceted approach tackles climate risk and opportunities across three key levels: market, portfolio, and company.
At the market level, NBIM champions transparency and standardization in climate-related financial reporting, collaborating with standard-setting bodies to create a uniform landscape for investors.
Their portfolio-level strategy integrates climate considerations into every investment decision, utilizing scenario analysis to understand potential impacts and setting net zero targets for real estate holdings.
At the company level, NBIM engages in dialogue with portfolio companies, urging them to set science-based net zero targets and utilizing voting rights as leverage when necessary.
Transparency is a cornerstone of NBIM’s approach, prioritizing comprehensive reporting to foster trust with stakeholders and allow investors to assess progress towards a sustainable future. Looking ahead, NBIM acknowledges the evolving nature of climate change and plans to establish a Climate Advisory Board to ensure agility and continuous improvement in their strategy.
NBIM’s climate action plan represents a leadership position in promoting sustainability, safeguarding investments while contributing to a more sustainable planet for future generations.
Norges Bank Investment Management manages the Norwegian Government Pension Fund Global. It manages assets worth more than 17,000 billion kroner, or about 1,590 billion dollars as of Feb 27, 2024.
