On September 20th, 2022, the world’s largest sovereign wealth fund, the Norwegian Oil Fund, presented its 2025 climate action plan. The fund lays out significant ambition aiming at “driving our portfolio companies towards net zero in 2050”. This is against the backdrop that delayed climate… Read More »Sovereign wealth funds step up scope 3 focus
Due to the increased focus on scope 3 GHG emissions, more and more financial institutions have begun reporting their scope 3 emissions. That’s good news from a climate perspective, because in order to define meaningful reduction targets, one must first understand the emission sources. It is, however, also worth acknowledging that there are challenges involved in determining these emissions.
Preparations for the the next UN Climate Change Conference (COP26) in Glasgow later this year are in full motion. The trend has been that investment portfolio managers are expected to not only report on the carbon footprint of their assets, but also set clear emission reduction targets. Similarly, the next trend could be that we see a surge for insurers to report on the emissions associated with the claims that are being handled and paid, and that relevant actions will be defined and followed-up on.