Norway’s wealth fund announced on Tuesday its decision to push its zero emissions goals. The world’s largest wealth fund stated that it will be pushing companies in its investment portfolio to cut their greenhouse gas emissions to zero by 2050, thereby aligning with the goals of the Paris Agreement.
This plan follows a proposal by the Norwegian government in April that the wealth fund pushes the 9,300 companies it invests in to pursue this climate goal.
Chief Governance and Compliance Officer Carine Smith Ihenacho expressed the fund’s willingness to comply with this proposal, declaring that “We will engage the companies to reach this target by setting credible preliminary targets and creating plans to reduce their direct and indirect emissions of greenhouse gases.”
Worth $1.2 trillion, the Norwegian wealth fund owns 1.3% of all listed global stocks; a fortune that would be the equivalent of $219,000 for every Norwegian citizen. The wealth fund invests significantly in oil and gas, using its revenues to purchase stocks, bonds, property, and renewable projects abroad. In addition to tracking its holdings’ environmental activities, the Norwegian wealth fund also seeks to invest in green initiatives.