Norway’s SWF to Vote on Climate Change Disclosure for BP and Shell
Norges Bank Investment Management (NBIM), manager of Norway’s sovereign wealth fund, intends to vote in favor of special shareholder resolutions at the general meetings of energy titans BP and Royal Dutch Shell. These resolutions call for listed companies to detail risk and opportunities associated with climate change and have it incorporated into their annual reports. This is the first time NBIM is publishing its voting intentions before the annual shareholder meeting.
In a press release, NBIM CIO of Equity Strategies Petter Johnsen stated, “As a long-term investor, we believe that the identification of future scenarios for climate regulation, carbon pricing, and environmental conditions is a useful tool to support strategic decision-making and we thereby support these resolutions.”
By analyzing recent filings, NBIM is the largest sovereign wealth fund investor in BP, holding 2.6% ownership and over 394 million shares. NBIM trails behind BlackRock and Legal & General Investment Management Ltd. in ownership stake sizes. The Kuwait Investment Office, part of the Kuwait Investment Authority (a long-time BP investor), holds a 1.8% stake in BP. SAFE Investment Company holds a 1.63% stake in BP. NBIM is ranked fourth in common equity ownership of Royal Dutch Shell.
According to an April 10th update from Norway’s Ministry of Finance, the wealth fund plans to dump listed equities that emit “unacceptable levels of greenhouse gases.”
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