NBIM: Responsible investment delivers results

8 February 2024

NBIM publishes on its website:

In 2023, we stepped up our efforts on climate, and we see that more companies are setting net zero targets. We also increased the scale of our risk-based divestments.

Today, we publish our 10th report on responsible investment, and we share more information about our ownership activities and the progress we are making than ever before.

In 2023, we set clearer expectations for how the companies we invest in should navigate the climate transition. We addressed climate risk in more than 800 company meetings, and we observe a positive trend: In 2023, 68 percent of emissions in the fund were from companies with net zero targets, compared to 56 percent the year before.

“An increasing number of companies have targets and transition plans. However, there is still a way to go before we reach our goal of net zero targets and transition plans for all the companies in the portfolio”, says Carine Smith Ihenacho, Chief Governance and Compliance Officer at Norges Bank Investment Management.

2023 was also the year when artificial intelligence became a part of our everyday life. Artificial intelligence creates vast potential, but also poses risks for companies, consumers and society. In August, we published our view on responsible use of AI. For the companies, this begins with board accountability. It also depends on transparency, explainability and robust risk management.

“We want to support the companies, but we also want to be clear voice and actively address current issues concerning the companies we invest in”, Smith Ihenacho says.

The fund’s pre-screening of companies entering our benchmark index and risk-based divestments increased in scale in 2023. We pre-screened more than 1,000 companies that came into our index and decided to not own 54 of these. Altogether, we divested from 86 companies due to high environmental and social risks. Since 2012, these investment decisions have contributed 10 billion kroner to fund returns.

Source: NBIM
Multiple reports with cicle diagram and text

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