Norges Bank Investment Management to ‘strengthen’ climate commitments

Norges Bank Investment Management (NBIM), Norway‘s sovereign wealth fund, has published its 2030 climate action plan, outlining how it plans to further strengthen its management of climate-related risks and opportunities.

The 2030 plan, which builds on NBIM‘s previous 2025 goals, will seek to strengthen the link between investment objectives and climate goals, engage with firms to ensure ‘credible’ climate targets and transition plans, and promote global standards for climate and nature-related disclosures.

It will also increase its focus on nature, adaptation and physical climate risk, and utilise AI to improve climate risk management and reporting.

‘Financial risk’

“Climate risk is financial risk,” commented Nicolai Tangen, CEO of Norges Bank Investment Management. “Our long-term returns depend on how the global economy manages physical climate risk and the energy transition. The global economy cannot outrun climate change, so neither can our investments.”

The fund, which is valued at around $2 trillion, is sticking to its climate commitments despite international pushback, particularly in the United States.

As NBIM noted, the updated 2030 plan reinforces its commitment to transparency, financial value creation, and responsible ownership.

“We will continue to support and challenge our portfolio companies to decarbonise their operations and business models,” added Carine Smith Ihenacho, NBIM’s chief governance and compliance officer.

‘A widening gap’

Commenting on the publication of the new climate plan, Brynn O’Brien, executive director of the Australasian Centre for Corporate Responsibility (ACCR), said that NBIM is a “clear leader in understanding and communicating the scale of climate-related risk. But there remains a widening gap between the systemic risk the fund itself describes and the scale of action it proposes in response.

“Much of the plan focuses on refining analytics, disclosure and engagement – all important tools. What’s missing is a shift from describing the risk to actively helping to reduce it. Managing exposure to risk is not enough when the risk itself threatens the long-term stability of markets.”

O’Brien added that the ACCR sees ‘critical gaps’ in NBIM’s commitments, including “the need for stronger and more transparent company stewardship, clearer thresholds for escalation where engagement fails, and a commitment to not finance new fossil fuel infrastructure. Leadership in this decade means using every available lever to help prevent the worst outcomes.” Read more here and here.