Norway Government Pension Fund Global, the world’s largest wealth fund, will decarbonize its holdings by pushing companies to reduce their greenhouse gas emissions to zero by 2050, in line with the Paris Agreement, Nicolai said Tangen, managing director of Norges Bank Investment Management (NBIM). tuesday.
The fund invests its oil revenues from Norway, Western Europe’s largest oil and gas producer, in stocks, bonds, real estate and renewable projects abroad for the benefit of future generations.
A zero-emission society
“Our long-term performance will depend entirely on how our portfolio companies manage the transition to a zero-emissions society,” said Nicolai Tangen.
Tuesday’s plan follows a proposal made in April by the Norwegian government, which said that the fund should push the 9,300 companies in which it invests to reduce their emissions to zero by 2050.
Norwegian government pension fund Global (GPFG), an investor of oil sector revenues with its $1.4 trillion making it one of the largest in the world, could become a #netzero activist shareholder in the face of climate and market risks.
— Energy by S&P Global (@SPGlobalEnergy) April 8, 2022
“We will engage companies to achieve this goal by setting credible preliminary targets and creating plans to reduce their direct and indirect greenhouse gas emissionssaid Carine Smith Ihenacho, Director of Governance and Compliance.
Still, the fund has previously said it won’t divest itself of large emitters to achieve those goals, but instead will be an “active shareholder” to effect change.
The fund published its first expectations for how companies should deal with climate change more than a decade ago.
Norway has also implemented a ban on the sale of new petrol and diesel vehicles which will begin in early 2025, earlier than any other country.
Seven countries ban the sale of new petrol and diesel vehicles by 2030:
1. Norway 🇳🇴 (banned by 2025)
2: Denmark 🇩🇰
3. United Kingdom 🇬🇧
4. Germany 🇩🇪
5. Ireland 🇮🇪
6. Iceland 🇮🇸
7. Netherlands 🇳🇱
8. California, USA 🇺🇸 (2035)pic.twitter.com/s5cge7SPqj
—Vala Afshar (@ValaAfshar) September 11, 2022
Global Norwegian Government Pension Fund
NBIM is a fund of the Norwegian Central Bank (Norges Bank) managed by Norges Bank Investment Management, the management unit of the bank.
The fund controls more than $1.2 trillion in assets. “The goal of the Petroleum Fund is to ensure responsible, long-term management of Norway’s oil and gas resource revenues, so that this wealth benefits current and future generations,” the statement said. NBIM website states.
It tracks climate-related risks, defined as the impact that climate change may have on its assets, but also takes into account the opportunities that could arise for individual companies that successfully adapt to the zero emissions plan.
On average, the fund holds 1.3% of all listed global stocks and its size is equivalent to 219,000 USD for each Norwegian citizen.
Reuters, TVP World