Norway’s $1.35 trillion wealth fund said today, Thursday, that it will strengthen its engagement with companies on their management of climate risks by voting against board members it judges are not doing enough on the issue.
The fund, which invests state revenues from oil and gas production and is managed by a unit of the Norwegian Central Bank, is one of the largest investors in the world, putting money into 9,200 companies in 70 countries, among other assets.
“We will now vote against directors if a company experiences material failures in oversight, management, or disclosure of climate risks,” the fund said in its annual report on responsible investments.
The fund has long been involved in the issue of climate change with the companies in which it invests. And last year, he voted against the re-election of 61 directors at 18 companies for failing to adequately manage climate risks.
“We expect there will be more companies to vote against this year,” the report said, adding that it will once again focus on the biggest emitters such as those in heavy industry, cement, steel, electricity and oil and gas.
In September, the fund laid out plans for companies to cut greenhouse gas emissions to zero by 2050, in line with the Paris Agreement and following a mandate from the government of Norway.
In 2022, the fund discussed climate change in 810 meetings with companies representing 33% of the value of its equity portfolio. One of them, he said, was oil giant Shell, with which the fund discussed the company’s energy transition plan and climate change.
In a sign of its focus on climate, the fund no longer prints the report, making it available online only.