ESG & Investing
Norway Wealth Fund Sets Net-Zero Target for Portfolio Firms
- Delayed transition is the biggest financial risk, fund says
- Selling out is an option if companies don’t comply, fund says
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Norway’s $1.2 trillion sovereign wealth fund will require the companies it invests in to reach net-zero emissions by 2050 at the latest, joining many global investors in setting such goals to prevent the financial risks from a “delayed transition.”
Just 10% of companies in the wealth fund’s portfolio have a net-zero target for 2050, even as many have taken strides toward emission targets, Norges Bank Investment Management Chief Governance and Compliance Officer Carine Smith Ihenacho said at a news conference in Oslo on Tuesday.