Norway’s Pension Fund Formulates Action Plan for Mitigating Climate Risk

Norges Bank owns more than 9,000 businesses in 70 countries. The fund’s climate risk reflects the global economy’s climate risk. Climate change has emerged as a key risk for Global Economy. In addition to serious consequences for the world’s climate and human living conditions, the changes will put the global economy at risk.

To manage climate-related risks, the Fund has developed a new Climate Action Plan.

  According to Nicolai Tangen, CEO of Norges Bank Investment Management, the bank’s goal is to be the world’s leading investor in terms of climate risk management. The portfolio companies’ long-term return will be determined by how they manage the transition to a zero-emission society.

The fund has set a target of net zero emissions for all portfolio companies by 2050 and will work with the portfolio companies to reduce greenhouse gas emissions.

Due to inflation, rising interest rates, currency depreciation, and war in Europe, the fund’s income fell across its portfolio during the third quarter, with equity investment falling by 4.8%, fixed income falling by 3.9%, and unlisted real estate falling by 1.1%.

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