A part of Watch Media

AMWatchSunday29 January 2023

  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
10/09/2018at 13:48

NBIM: Continued harm to oceans will erode business profits

Norges Bank Investment Management is making demands that companies incorporate ocean sustainability into their business plans and risk management. Non-compliant companies could ultimately find themselves divested from the Norwegian oil fund's portfolio.
Marthe Skaar, Communications and External relations manager at Norges Bank Investment Management. | Photo: PR: NBIM
by SØREN RATHLOU TOP

Norges Bank Investment Management (NBIM) plans to place more emphasis on ocean sustainability throughout its asset management chain.

To this end, NBIM, which manages Norway's Government Pension Fund Global's (GPFG) EUR 862 billion of assets, has published a set of expectations on ocean sustainability.

The purpose is to make invested companies integrate ocean sustainability into their business plans and risk management by reporting on the subject and act responsibly and be transparent on ocean-related governance. This is particularly important for ocean-based industries, such as shipping, fishery, aquaculture but also companies whose production is related to the value chain of plastic products and agricultural goods.

"These companies may have a negative impact on the ocean and evolving regulatory and consumer attitudes towards more sustainable uses of the ocean present both risks and opportunities for the companies. We therefore saw the need to set out our clear expectations towards the companies we invest in on ocean sustainability," writes Marthe Skaar, communications manager at NBIM, to AMWatch.

Last resort

NBIM believes that continued degradation of the ocean will reduce companies' ability to generate value for investors in the long term.

The Oslo-based investor can divest companies whose activities may be considered unsustainable, which include business models that are not aligned with evolving developments in technology, regulatory and environmental matters.

Divesting is, however, often the last resort, according to Skaar, when other options have not delivered sufficient progress.

"Our preferred tool is dialogue. We also vote on all 9,000 companies we invest in and will use our votes to follow up on our expectations when relevant. In smaller companies where we do not see that the company has a sustainable business model, we might choose to do a risk-based divestment."

She says 216 companies have been divested since 2012 solely based on assessments of ESG. Six divestments occurred in 2017, and one of them was due to water pollution and its environmental risks. The company name, however, remains undisclosed.

NBIM has previously established similar expectation documents on climate change, water management, children’s rights, human rights, anti-corruption and tax and transparency.

Related articles:

  • NBIM's Deputy CEO, Trond Grande, presented the Q2 result Tuesday at a press conference alongside Egil Marts, Deputy Governor of Norges Bank. | Photo: PR: NBIM

    NBIM lags return benchmark in Q2, steps up portfolio risk

    For subscribers

  • Photo: /ritzau/AP/Martin Meissner/

    NBIM behind climate change framework

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Pension firms can play a significant role in steering companies into a more sustainable direction, says SPP and Storebrand Head of Sustainability, Johanna Lundgren Gestlöf. | Foto: Jonas Eng
AMNews

Two additional pension firms join the green club in Swedish sustainability rankings

Swedish unit-link insurance companies have undergone their annual sustainability assessment by insurance brokers, Söderberg & Partners. Several have moved up and down the rankings.
  • Alecta goes from amber to red in sustainability report
  • New sustainability report: Higher quality in fund offerings from Swedish unit-link insurance companies

For subscribers

Maunu Lehtimäki, CEO of Evli. | Foto: PR Evli.
AMWatch

Alternative sales grow and net flows start to stabilize at Finland's Evli

For subscribers

Speed is of the essence when launching new investment products, CFO Masih Yazdi says. | Foto: PR / SEB
Fund Management

SEB aims for speedy product launches to make up for huge AUM drop in 2022

For subscribers

Foto: Thomas Borberg/Ritzau Scanpix
Responsible Investing

Danes' equity holdings shrank by 9% in 2022

For subscribers

Foto: Shannon Stapleton/Reuters/Ritzau Scanpix
AMNews

Investors are missing earnings data after 2022 IPO collapse

For subscribers

Karl C. W. Mathisen fills position as head of equities at Folketrygdfondet on Feb. 1. | Photo: Folketrygdfondet
People

Folketrygdfondet finds new head of equities in own ranks

For subscribers

Further reading

Timo Löyttyniemi, CEO of the State Pension Fund of Finland (VER). | Foto: PR VER.
AMWatch

Finnish state pension fund looks at boosting private assets exposure

”Taking into account how large changes have been taking place in the world during the past three years, we have made surprisingly few adjustments within our portfolio,” says Timo Löyttyniemi, CEO of Finland’s EUR 21.3bn State Pension Fund. 

For subscribers

Simon Cooke is the portfolio manager for BNY Mellon's new Responsible Horizons EM Debt Impact Fund. | Foto: PR/ BNY Mellon
Fund Management

BNY Mellon launches EMD impact fund as issuances take off

One of the world’s largest asset managers has launched a new emerging market debt impact fund, and expects the Nordics to take part as one of its largest investor groups, Portfolio Manager Simon Cooke tells AMWatch.

For subscribers

Marlene Nørgaard Carolus has joined Formue as associated partner. | Foto: PR Formue.
AMNews

Norwegian wealth advisor to open Danish office

Formue, wealth consultant based in Norway, plans to open an office in Copenhagen, thereby gaining presence throughout Scandinavia.

For subscribers

Latest news

  • Two additional pension firms join the green club in Swedish sustainability rankings – 27 Jan
  • Investors are missing earnings data after 2022 IPO collapse – 27 Jan
  • Danes' equity holdings shrank by 9% in 2022 – 27 Jan
  • SEB aims for speedy product launches to make up for huge AUM drop in 2022 – 27 Jan
  • Alternative sales grow and net flows start to stabilize at Finland's Evli – 27 Jan
  • Folketrygdfondet finds new head of equities in own ranks – 27 Jan
  • Global clean-energy investments match fossil fuel for the first time – 27 Jan
  • Here is how Norwegian fund managers performed in 2022 – 26 Jan
  • Morgan Stanley fines its bankers over messaging breaches – 26 Jan
  • Slight recovery in SEB’s AUM in fourth quarter – but outflow continues – 26 Jan
See all

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

Watch Jobs

  • Head of Compliance, DLA Piper Denmark

  • Forvaltningsservicechef i Vestforbrænding

  • Senior Porteføljemanager

  • Jurister søges til Corporate Legal i Danmarks Eksport & Investeringsfond

  • People and Operations Partner

See all jobs

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

See all jobs

Colophon

AMWatch
Search

Sections

  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Sitemap
  • RSS feeds

Editor

Anne Louise Houmann

alh@amwatch.dk

Tel.: +45 2830 5142

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7491

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7491

Jobs

Subscription

Try AMWatch or get an offer for a subscription meeting the exact needs of you or your company.

amwatch@infowatch.dk

Tel.: +45 7077 7491

Learn more about subscriptions here

Address

AMWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8382

Guidelines

  • Privacy Policy

Copyright © AMWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
AMWatch

Google ChromeMozilla FirefoxMicrosoft Edge