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Banks’ Hidden ESG Risks Exposed in Norway Wealth-Fund Review

  • Climate risk is lurking in unexpected places, review finds
  • Fund is under pressure to do more to brace for global warming
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Finance has emerged as one of the sectors around which climate risk is least well understood, according to a review intended to set a new investing mandate for the world’s biggest wealth fund.

Norges Bank Investment Management, which oversees $1.4 trillion in assets, should be handed a new mandate to ensure the risks posed by global warming are properly reflected in its portfolio, the government-commissioned report found. The fund should also pursue investment strategies that are in line with the Paris Agreement’s goal of achieving net-zero carbon emissions by 2050, it said. But to do that, it needs to identify the biggest climate risks.