Work on responsible investment is an important part of Norges Bank’s mandate and has evolved as the fund has grown. Our work on responsible investment forms an integral part of the investment process. The aim of this report is to provide an overview of the many areas we are working on.
Our principles and expectations build on internationally recognised principles. It is important for us to promote high standards of corporate governance in order to safeguard our investments and assets. Research helps increase understanding of factors that can affect future returns.
We are an active owner and use our voting rights to safeguard the fund’s assets. As a large, long-term investor, we engage directly with companies’ board and management.
We analyse risks relating to environmental, social and governance issues. We follow up selected issues across companies in the portfolio and attach importance to developing and improving the available data. We have formulated expectations for how companies should manage risk and report on their activities.
We expect companies to protect children's rights in their operations. They should have adequate systems in place and report on their activities. We have been assessing selected companies with activities or supply chains in sectors with a high risk of child labour since 2008.
Limited supplies of water are a growing risk for many companies. We expect those in particularly high-risk industries to have a clear strategy for water management. We have been assessing companies exposed to water-related risk since 2010.
We expect companies to analyse how the challenges of climate change will impact on their operations and to develop plans and targets for managing climate risk.
We have been assessing selected companies exposed to climate risk since 2010.
Norges Bank's letters to the Norwegian Ministry of Finance, 5 February 2015
Consultation - Report from the expert group on investments in coal and petroleum companies
Financial risk as a consequence of climate change