A report by the Norwegian NGO “Framtiden i vaare hender” (the Future in Our Hands) has brought attention to Norway’s $1.6 trillion sovereign wealth fund, the world’s largest, for its failure to meet its climate goals. Reuters reported on Monday.
The fund, primarily funded by the country’s oil and gas revenues, has set a target for its investments in 9,000 companies worldwide to achieve net-zero greenhouse gas emissions by 2050, aligning with the Paris Agreement.
However, according to the report, the fund’s management, Norges Bank Investment Management (NBIM), has not met these objectives. Despite establishing climate change expectations for corporate boards and participating in related votes at annual general meetings, NBIM has been criticized for endorsing strategies categorized as “climate harmful” by the NGO.
The report examined the fund’s voting patterns on 16 climate resolutions across nine major oil companies, including BP, Shell, TotalEnergies, Chevron, and ExxonMobil. It revealed that the fund supported only seven of these resolutions, while endorsing strategies deemed detrimental to the climate in the remaining nine cases.
Notably, NBIM voted against all climate resolutions at the annual general meetings of four oil majors: BP, Shell, TotalEnergies, and Marathon. These companies have been identified by CA100+, an investor-led initiative, as lacking in their efforts to address climate change.
The report concludes that NBIM’s failure to back climate resolutions consistent with internationally agreed-upon goals undermines its position as a steward of sustainable finance. This has prompted serious questions regarding the fund’s commitment to its climate ambitions and its role in sustainable investing.
