Norges Bank Investment Management (NBIM) is the asset management unit of the Norwegian central bank (Norges Bank). It manages the Norwegian Government Pension Fund Global. It works to safeguard and build financial wealth for future generations. It aims to get the highest possible return on the fund within the investment mandate set by the Ministry of Finance. It seeks to safeguard the long-term financial interests of Norway’s future generations through active management and active ownership.
The Government Pension Fund Global had a market value of 8,488 billion kroner (USD1,037 bn) at the end of 2017.
“We are an investor for future generations and thereby dependent on sustainable market outcomes. We have joined this initiative to contribute to the implementation of sustainability principles and good governance practices that will raise the bar for all companies.” Yngve Slyngstad, CEO, Norges Bank Investment Management
Summary of sustainable finance strategy
As a fund for future generations, NBIM has a very long investment horizon. Responsible investment is an integral part of its management. It is an active owner, and investment decisions take account of how it views companies’ long-term financial, environmental and social risks. Its approach to responsible investment is underpinned by the following three pillars:
1. Setting standards
NBIM aims to contribute to the development of well-functioning markets and sustainable market outcomes. It recognizes a set of key international principles and standards, and contribute to their further development. Its expectations of companies, positions on specific issues, and guidelines for voting provide predictability in its long-term ownership. It sees good governance as a premise for sustainable business practices.
2. Exercising ownership
NBIM aims to promote long-term value creation in the companies in which it invests. Voting is one of the most important tools it has for exercising ownership rights. In its dialogue with companies, it raises governance and sustainability issues considered relevant. It works with companies to increase the information available to investors, and promote good business practices.
3. Investing sustainably
NBIM aims to identify long-term investment opportunities and reduce the fund’s exposure to unacceptable risk. It believes there are opportunities for investing in companies and technologies that enable more environmentally-friendly economic activity. At the same time, there are companies that it chooses not to own, based on long-term sustainability or ethical assessments.
• 2018 Responsible Investment Report available here.
• Expectations on how companies should manage risk and report on activities with regards to children’s rights, water management and climate change available here.