NBIM Unveils 2025 Climate Action Plan to Drive Portfolio Companies Toward Net Zero by 2050
Norges Bank Investment Management (NBIM), the manager of Norway’s $1.8 trillion sovereign wealth fund, has released its 2025 Climate Action Plan, outlining a comprehensive strategy to guide its portfolio companies toward achieving net-zero greenhouse gas emissions by 2050. This initiative underscores NBIM’s commitment to integrating climate considerations into its investment practices, reflecting the growing recognition of climate change as a material financial risk.
We will be a global leader in managing the financial risks and opportunities arising from climate change.
Norges Bank Investment Management
The plan emphasizes a multi-tiered approach:
- Market Level: NBIM advocates for enhanced climate-related financial reporting standards and supports the development of efficient carbon markets. By promoting standardized disclosures, NBIM aims to facilitate better risk assessment and decision-making across the investment landscape .
- Portfolio Level: The fund integrates climate considerations into investment decisions through scenario analysis and risk assessment. NBIM is also setting a net-zero target for its unlisted real estate portfolio by 2050, aiming to reduce emissions intensity by 40% by 2030 .
- Company Level: NBIM engages with portfolio companies to encourage the adoption of science-based net-zero targets and credible transition plans. Tools such as collaborative dialogue, voting rights, and transparent reporting are employed to drive change. By 2025, NBIM aims for a significant increase in the number of high-emitting companies setting net-zero targets .
High level requirements include:
- Clear board-level responsibility for sustainability
- Science-based targets for both climate and nature
- Human rights due diligence aligned with UNGP and OECD
- Transparent, forward-looking reporting aligned with #ESRS, #GRI, or #TCFD
Transparency is a cornerstone of the plan, with NBIM committing to comprehensive reporting on climate risk exposure and engagement activities. The establishment of a Climate Advisory Board is also planned to provide expert insights and challenge assumptions, ensuring the strategy remains effective amid evolving climate dynamics.
This action plan aligns with NBIM’s mandate to achieve the highest possible return with acceptable risk, acknowledging that sustainable development is integral to long-term financial performance. By steering its vast portfolio toward net-zero emissions, NBIM positions itself as a leader in responsible investment, contributing to global efforts to mitigate climate change.
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. On this basis, our ambition is for our portfolio companies to achieve net zero emissions by 2050. At the heart of our efforts is driving portfolio companies to net zero emissions by 2050 through credible targets and transition plans for reducing their scope 1, scope 2 and material scope 3 emissions.
About the fund
The aim of the fund is to ensure a long-term management of revenue from Norway’s oil and gas resources, so that this wealth benefits both current and future generations. The fund’s formal name is the Government Pension Fund Global.
How the fund is invested
The Government Pension Fund Global is one of the world’s largest funds. Investments are spread across most markets, countries and currencies to achieve broad exposure to global growth and value creation while ensuring good risk diversification. The fund invests only abroad so that the Norwegian economy does not overheat.
