NBIM’s Climate Plan falls short of its own warnings on risk; but focus on corporate lobbying and board scrutiny welcome

The Australasian Centre for Corporate Responsibility (ACCR) is commenting on Norges Bank Investment Management’s (NBIM’s) 2030 Climate Action Plan, released today.

Brynn O’Brien, ACCR’s Executive Director, said:

“NBIM is a clear leader in understanding and communicating the scale of climate-related risk. But there remains a widening gap between the systemic risk the fund itself describes and the scale of action it proposes in response.

“Much of the plan focuses on refining analytics, disclosure and engagement — all important tools. What’s missing is a shift from describing the risk to actively helping to reduce it. Managing exposure to risk is not enough when the risk itself threatens the long-term stability of markets.

“For a universal owner with a mandate to safeguard value for future generations, the fiduciary duty to manage climate related risk is inseparable from mitigation -- taking action to reduce the likelihood and severity of systemic climate risks. Fulfilling that duty means using influence to drive mitigation, not just monitor consequences.

“The fund’s commitment to increased scrutiny of corporate policy advocacy as it relates to climate change is new and very welcome, as is the explicit acknowledgement of voting against boards as an escalation tool. However, we continue to see critical gaps: the need for stronger and more transparent company stewardship, clearer thresholds for escalation where engagement fails, and a commitment to not finance new fossil fuel infrastructure. Leadership in this decade means using every available lever to help prevent the worst outcomes.”