Input to NBIM’s Climate Action Plan: Mitigating climate risk

The purpose of the Fund managed by NBIM, whose mandate is set by the Norwegian Parliament, is to “safeguard and build financial wealth for future generations”.

The next months, as NBIM writes its new Climate Action Plan, are critical for the Fund to commit to raising the alarm with decision-makers around the world, and to make the case for proactive reallocation and risk management to prevent catastrophic climate change. Deepening its analysis, the fund may likely find even greater systemic polycrisis and tipping point risks. At a time when we see both financial actors and certain jurisdictions walking away from their commitment to the transition, and as we see rising focus on geopolitical security concerns, Norwegian policymakers and NBIM alike would do well to take on a leadership role to mitigate one of the single greatest systemic threats to both the fund’s future returns and the wealth and wellbeing of Norwegian future generations. We encourage NBIM to communicate these risks to policymakers in Norway and abroad and to ‘lead by example’ for other asset owners seeking a roadmap to stay the course on transition amidst unprecedented volatility.

Download to read the full statement.

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