OSLO: Finance has emerged as one of the sectors around which climate risk is least well understood, according to a review intended to set a new investing mandate for the world’s biggest wealth fund.
Norges Bank Investment Management, which oversees US$1.4 trillion (RM5.91 trillion) in assets, should be handed a new mandate to ensure the risks posed by global warming are properly reflected in its portfolio, the government-commissioned report found.
The fund should also pursue investment strategies that are in line with the Paris Agreement’s goal of achieving net-zero carbon emissions by 2050, it said. But to do that, it needs to identify the biggest climate risks.