Oslo — Norway’s $1.4 trillion sovereign wealth fund, the world’s largest, should push companies it invests in to eventually cut their greenhouse gas emissions to nil, in line with the Paris Agreement, a government-appointed commission said on Friday.
The Norwegian fund, set up 25 years ago to share revenues from Norway’s oil and gas industry with future generations, owns 1.4% of all globally listed stocks on average, across more than 9,100 companies worldwide. It also owns government bonds and some fixed assets.
The fund should maintain a strategy of broad portfolio diversification, the report added.
Excluding whole industries, such as oil and gas, would not improve the fund’s tradeoff between risk and return, the report said.
- rEUTERSReporting by Gwladys Fouche, editing by Terje Solsvik)