Why the world's largest asset owner is leaning into ESG

13 snips

Sep 20, 2024

Carine Smith Ihenacho, Chief Governance and Compliance Officer at Norges Bank Investment Management, shares insights from the world's largest sovereign wealth fund. She discusses the fund's commitment to ESG principles and its comprehensive climate action plan targeting net-zero emissions by 2050. Carine tackles the complex balance of engagement versus divestment to influence companies towards sustainable practices. Amidst the ESG backlash, she emphasizes the critical importance of long-term value creation and strategic investment in renewable infrastructure to combat climate change.

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Intro

00:00 • 3min

The Long-Term Impact of ESG on Investment Strategies

03:26 • 2min

Investing for a Sustainable Future

05:32 • 10min

Navigating ESG Backlash: Emphasizing Long-Term Value

15:30 • 2min

Investing in Renewable Infrastructure Amidst Climate Urgency

17:41 • 6min

In this episode of the ESG Insider podcast we hear from the world’s largest asset owner, Norges Bank Investment Management (NBIM).

NBIM is Norway’s $1.7 trillion-dollar sovereign wealth fund and owns almost 1.5% of all shares in the world’s listed companies. To understand how NBIM is exerting that influence, we speak to Chief Governance and Compliance Officer Carine Smith Ihenacho.

Carine explains how NBIM is approaching engagement and divestment. She tells us about the climate action plan she helped design and implement. And she explains why NBIM is leaning into its responsible investing ethos amid the ESG backlash occurring in some parts of the world.

“For us, ESG is not about politics,” she says. "We look at it from an investor perspective and from a long-term value creation perspective. For us, it's really about risk and opportunities.”

S&P Global Sustainable1 is hosting a co-located event at The Nest Climate Campus on Sept. 25. To learn more and register your interest, click here.

Read the latest thought leadership from S&P Global Sustainable1 here: https://www.spglobal.com/esg/insights/featured/sustainability-journal/fall-2024-special-edition

This piece was published by S&P Global Sustainable1, a part of S&P Global.

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