AMWatch

Committee recommends zero-emission investment targets for Norwegian oil fund

A Norwegian committee recommends that companies that receive investments from the country's national oil fund must set long-term zero-emission targets.

Photo: Carsten Rehder/AP/Ritzau Scanpix

Any company that is a beneficiary of investments from the Norwegian Government Pension Fund Global, otherwise known as the oil fund, should have to work towards setting long-term targets for achieving climate neutrality.

This is one of the recommendations set forth by a committee that has been set up by the Norwegian government to examine the oil fund's climate risks, writes Norwegian media E24.

"There is a need for further development of the efforts related to climate risks, and we believe that Norway should strive towards making the fund a world leader in terms of its climate efforts," says Martin Skancke, chairman of the committee.

The committee also suggests that the oil fund set up requirements for companies to stress-test their business models to ensure that the companies retain earnings regardless of changes to climate policy, including meeting the target of keeping the temperature increases to 1.5 degrees Celsius.

"Doing so would make it easier to render visible any deviations from emission trajectories that align with the climate targets, and it will be possible to quantify the potential economic consequences of this," the committee writes according to the newspaper.

Norway's oil fund is the world's largest sovereign wealth fund, owning shares in more than 9,000 companies worldwide.

(This article was provided by our sister media, ShippingWatch)

English Edit: Christoffer Østergaard

Norway's first rate hike since crisis flagged for September

Norway's oil fund calls for more disclosure from Chinese companies

More from AMWatch

Watchdog pulls plug on scandal-plagued firm with distribution ties to fund managers

Financial house Nord Fondkommission has had its plug pulled by the Swedish FSA after a long investigation into its advisory services. The decision also has ramifications for all of the firm's affiliated agents, including one of Sweden's biggest robo-advisors. Nord is also a distributing partner of some of the country's best known fund managers.

Schroders' flagship survey draws counterintuitive conclusions

Sustainable funds are all Swedish investors want to talk about, but a Schroders Global Investor Study of investors in 33 countries places them last when it comes to positive attitudes about only investing in sustainable funds. "This is indeed counterintuitive," says Henrik Jonsson, the manager's head of Nordics.

Further reading

Related articles

Trial banner

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch