Norway's Wealth Fund Pushes Climate Action Amid U.S. Backlash

Norway's $2 trillion sovereign wealth fund is ramping up its efforts to pressure the companies within its portfolio to achieve net zero greenhouse gas emissions by 2050, a move that continues despite the increasing opposition to climate-friendly policies in the United States.

The fund's updated climate strategy, designed to align with the Paris Agreement, includes a focus on scrutinizing companies' lobbying activities related to climate change. The fund has also indicated it might vote against company boards that it disagrees with on climate strategy.

Some observers praise the fund's emphasis on corporate policy advocacy, yet criticize the lack of a clear strategy for dealing with firms resistant to change. Carine Smith Ihenacho, Chief Governance and Compliance Officer, noted that engagement is prioritized over divestment to effectively reduce emissions.