Norway’s USD 1.4 trillion sovereign wealth fund, which is one of the world’s largest, has steered a risk-based screening of 442 firms in 2021, inferring that it would abstain from investing in 9 of those firms, stated on 15th December 2021.
Norway’s risk-based screening in 2021
Nicolai Tangen, the CEO of Norges Bank Investment Management in Norway, stated that the firm’s pre-screening rests on and cements its long-standing work with risk-associated disinvestments.
The Norwegian fund capitalizes on around 9,100 firms around the world. It utilizes the FTSE Global All Cap index from FTSE Russell as the foundation for its reference index.
As fresh stocks are encompassed in the FTSE index, Norway’s sovereign wealth fund can screen out firms it does not want to include in its portfolio based on social, environmental, and governance (ESG) risks. The fund stated that it would not pinpoint the affected firms as the management of the fund appropriated the verdicts.
It stated that it also possessed an additional 65 firms with elaborate sustainability risks that it would contemplate following up on in the tenure ahead. It did not state the particulars of the worth of these investments.