Responsible investment

The fund exists to help finance the Norwegian welfare state for future generations. The future value of the fund depends on sustainable growth, well-functioning markets and value creation at the companies we invest in.

Our expectations

We express clear expectations of the companies and markets we invest in.

Our voting

To protect the fund’s assets, we aim to vote at all shareholder meetings.

What is responsible investment?

The fund’s long-term return is dependent on sustainable economic, environmental and social development. As we own a small slice of most of the world's largest companies, we have the ability to influence how they operate. We aim to promote long-term value creation at the companies and minimise negative effects on the environment and society. This is how responsible investment contributes to the the fund's objective of highest possible return with acceptable risk.

Explore
Our expectations
Voting
Engaging with companies
Sustainability due diligence
How we influence markets and industries
2025 Climate action plan
Divesting from companies
Ethical exclusions
Consultations
Position papers

How we work with companies on sustainable growth

The fund’s future value is dependent on the value created by the companies we invest in. We therefore monitor their performance – how they are run and how they impact on the environment and society. We call this active ownership.

We express clear expectations

We express clear expectations for how the companies in our portfolio should address global challenges. We assess how they report on their work in specific areas, and engage with selected companies on making improvements.

We monitor and engage with companies

We identify and manage risks that could affect the value of the fund. We engage with companies that expose us to unacceptable ESG risk. In some cases, we may divest from them completely.

We vote at shareholder meetings and interact with board and management

To protect the fund’s assets, we aim to vote at all shareholder meetings. As a large, long-term investor, we also have an ongoing dialogue with companies’ board and management.

International standards

As a market participant in 71 countries, we benefit from well-functioning and legitimate markets, global solutions to common challenges, and generally agreed international standards. We also support academic research.

How we work with climate and the environment

Our ambition is for our portfolio companies to achieve net zero emissions by 2050.

It is the goal of our responsible investment management for our portfolio companies to align their activities with global net zero emissions in line with the Paris Agreement.
We must constantly develop and improve our work on responsible investment if we are to be able to safeguard the fund’s assets and create prosperity for future generations.
Carine Smith Ihenacho
Chief Governance and Compliance Officer

Ethical guidelines

The Norwegian parliament has decided that the fund should not invest in companies that cause or contribute to serious violations of ethical norms. The guidelines rests on fundamental ethical norms that maintain broad support in the population, such international environmental and human rights conventions.

Companies that manufacture certain types of weapons

The fund must not invest in companies which themselves, or through entities they control, manufacture weapons that violate fundamental humanitarian principles through their normal use, or sell weapons or military materiel to certain countries.

Companies that produce tobacco or cannabis for recreational use

The fund must not invest in companies that produce tobacco or cannabis for recreational use.

Companies that base their operations on coal

The fund must not invest in mining companies that derive 30 percent or more of their revenue from the production of coal, and power companies that derive 30 percent or more of their revenue from coal-based power production.

Companies that contribute to violations of fundamental ethical norms

Companies can be excluded from the fund where there is an unacceptable risk that their conduct contributes to violations of fundamental ethical norms.

Ethical exclusions

An independent Council on Ethics assesses companies against the ethical guidelines for the fund and makes recommendations for further action. Norges Bank’s Executive Board then takes the final decision on whether companies should be excluded, placed under observation, or invited into dialogue with the aim of reducing risk.

Latest events

Press seminar: Responsible investment 2023

CEO Nicolai Tangen, Chief Governance and Compliance Officer Carine Smith Ihenacho, Global Head of Active Ownership Wilhelm Mohn and Head of Environment Eivind Fliflet presented the highlights of our responsible investment management in 2023.

NBIM Talk: Navigating net zero

We launched our Climate action plan one year ago. Our ambition is that the companies we invest in achieve net zero emissions by 2050 through credible emission reduction targets and transition plans. In this NBIM Talk, we presented the progress portfolio companies are making. The event took place at our Oslo office on 17 October.

Latest report on responsible investment

2023 was marked by war, the climate crisis and inflation. The fund is a long term, clear and predictable owner in a changing world. We made progress in line with our climate action plan. We also looked in detail at responsible artificial intelligence and how it is relevant to us as investor, and we continued to increase our voting transparency.