Market Analysis

Norway's $1.6 trillion sovereign wealth fund, known as the world's largest, has been criticized for not fully aligning with its climate ambitions, as revealed in a report by the Norwegian NGO Framtiden i vaare hender (the Future in our Hands). 

Despite aiming for the 9,000 companies it invests in to achieve net zero greenhouse gas emissions by 2050, the fund has fallen short on supporting multiple shareholder proposals urging oil companies to reduce their emissions.

Managed by Norges Bank Investment Management (NBIM), the fund has outlined expectations for corporate boards regarding climate change and participates in voting on such matters during annual general meetings. However, the report highlights a discrepancy between NBIM's climate engagement strategy and its actual voting behavior.

The analysis of the fund's voting record on 16 climate resolutions at nine oil majors indicates that while it supported seven resolutions, it opposed strategies deemed "climate harmful" in the remaining cases. Specifically, NBIM voted against all climate resolutions at the annual general meetings of four oil majors identified by CA100+ as falling short in their efforts to address climate change, including BP, Shell, TotalEnergies, and Marathon.

The report suggests that NBIM's failure to endorse climate resolutions consistent with international goals undermines its role as a steward of sustainable finance.

Paraphrasing text from "Investing" all rights reserved by the original author.