New climate action plan
20 September 2022
Climate change is one of the greatest challenges of this century. In addition to serious consequences for the world’s climate and living conditions for human beings, the changes will result in considerable risk for the global economy. Through ownership in more than 9,000 companies in 70 countries, the climate risk of the fund reflects the climate risk of the global economy.
The fund has a clear financial interest in the goals of the Paris Agreement being reached. Our analyses show that a delayed climate transition is what constitutes the greatest financial risk for the fund.
”Our goal is to be the world’s leading investor in terms of how climate risk is managed. Our long-term return will depend on how the companies in our portfolio manage the transition to a zero emissions society” says CEO of Norges Bank Investment Management Nicolai Tangen.
The fund has worked with climate for more than 15 years. However, the fund will now do more, and the new action plan specifically shows what will be done.
”We set a target of net zero emissions by 2050 at the latest for all companies. And we will engage with the companies to reach this target by setting credible preliminary targets and creating plans to reduce their direct and indirect emissions of greenhouse gases”, says Chief Governance and Compliance Officer Carine Smith Ihenacho.
The climate action plan is a result of work across the fund, and it is also based on input and investigations from external experts – particularly last year’s report from the Skancke committee. The Ministry of Finance has also made changes to the management mandate that relate to the climate.
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