Norway Wealth Fund Expands Climate Engagement to Scope 3 and Nature Risk

Norges Bank Investment Management has released its 2030 Climate Action Plan, extending its engagement-led approach to portfolio decarbonisation through the end of the decade. The updated plan broadens the fund's engagement focus to include companies with the highest Scope 3 emissions, those exposed to physical climate risk, and issues spanning nature loss and corporate policy advocacy.

NBIM, which manages Norway's oil fund with assets totalling approximately $1.4 trillion, has expanded its climate focus list beyond companies representing 70% of Scope 1 and 2 financed emissions to now include those with significant Scope 3 and physical climate risk exposure. To date, the fund has engaged with companies covering 71% of its financed emissions, voted against directors at 69 firms for inadequate climate risk management, and divested from 44 companies on climate grounds. The share of portfolio emissions covered by science-based net zero targets has risen to 76% from 57%.

As the world's largest sovereign wealth fund—owning roughly 1.5% of all listed shares globally and holding positions in around 8,500 companies—NBIM's updated framework carries significant market weight. The new plan reinforces the fund's view that climate risk is financial risk, strengthening the link between its investment objectives and its stewardship activities. Increased emphasis on nature and physical climate resilience reflects a broader shift among large asset owners to treat biodiversity and adaptation risks alongside transition risk in portfolio management.

The 2030 plan prioritises embedding artificial intelligence and proprietary analytics into climate risk management, and commits to updating company-level expectations to reflect the expanded focus on physical risk and nature. NBIM will continue pushing portfolio companies to set net zero targets and publish credible transition plans, while also engaging on corporate lobbying alignment with climate goals. CEO Nicolai Tangen described engagement as the heart of the fund's efforts, signalling continued escalation—including director votes—at companies that fail to demonstrate adequate climate risk management.

Key figure — 76% of portfolio emissions now covered by science-based net zero targets