Norway’s $1.8 trillion sovereign wealth fund divested from 49 companies last year based on sustainability assessments, down from 86 a year earlier, retaining its focus on ESG in the face of a widespread backlash against environmental, social and governance reporting.
As of the end of 2025, 74% of financed emissions from companies in the fund’s portfolio were covered by 2050 net-zero emissions goals, Norges Bank Investment Management, as it is officially known, said in its annual sustainability report Feb. 6. Of the divestments, five were associated with climate risk, 15 due to insufficient risk management related to human rights and eight were related to anti-corruption efforts.
The fund, which invests Norway’s oil and gas riches, wants to have all the companies it invests in to achieve net-zero emissions by 2050 at the latest. It cast votes at over 11,000 shareholder meetings and went against management in 5% of resolutions for reasons ranging from executive pay to board independence, NBIM said.
“Many companies view the energy transition as an opportunity,” Chief Governance and Compliance Officer Carine Smith Ihenacho said in the report. “While this progress is encouraging, the transition must gather further pace, supported by coherent policy measures.”
The report comes at a time when many business leaders and lawmakers — particularly in Europe — are taking issue with ESG regulations due to concerns the requirements are preventing companies from competing freely with their peers in the U.S. and Asia. They point to the bloc’s stagnating economy, and warn that competitiveness will slide further as President Donald Trump forces through a program of deregulation on the other side of the Atlantic.
NBIM manages the assets of sovereign wealth fund Government Pension Fund Global, Oslo, which totaled 19.24 trillion Norwegian kroner ($1.83 trillion) as of Sept. 30.
