Norway's $2 Trillion Fund Pushes for Climate Compliance Amid U.S. Resistance

Norway's $2 trillion sovereign wealth fund is increasing its efforts to ensure that companies in its portfolio reduce their greenhouse gas emissions to net-zero by 2050. This move stands in stark contrast with the United States, where climate-friendly policies are facing increasing pushback.

The fund's latest climate strategy aims to align all 8,500 companies it invests in with the Paris Agreement. Expanding its focus beyond Scope 1 and 2 emissions, the fund will now target Scope 3 emissions across the value chain, targeting companies with the highest contributions for strategic dialogue at the board level.

This initiative comes as some international investors retreat from ESG commitments. The divide is further highlighted by the U.S. under the previous Trump administration's withdrawal from the Paris climate agreement and promotion of fossil fuel production. Notably, the fund holds about $1 trillion in U.S. investments.