The structure of the report
The original report’s executive summary and chapter 7 has been translated from Norwegian to English. The report’s table of contents has also been included below to show the structure of the report and the topics that have been covered.
Chapter 2 describes the climate challenge, climate risk and economic consequences. Chapter 3 looks at how climate risk arises and can be analysed at company level, chapter 4 shows how the risk is distributed among business owners through the financial market, while chapter 5 describes how investors approach responsible investment and climate risk. Chapter 6 looks at climate-related threats and opportunities for the GPFG, while recommended changes in the management of the GPFG follow in chapter 7.
Summary
- 1 Introduction
- 1.1 Our priorities
- 1.2 About the report
- 1.3 About the work of the expert group
- 2 Analysis of climate risk
- 2.1 Introduction
- 2.2 The climate challenge we face
- 2.3 What we mean by the concept of climate risk
- 2.4 Climate risk and economic growth
- 3 Business climate risk
- 3.1 Analysis of companies’ climate risk
- 3.2 From risk analysis to risk management
- 3.3 Principles for managing climate risk
- 3.4 Company reporting and scenario analysis
- 4 From climate risk to financial risk
- 4.1 Introduction
- 4.2 The largest market failure in history
- 4.3 Price, value and equilibrium
- 4.4 Climate risk in the financial market
- 4.5 Market pricing of climate risk
- 5 Investors’ approach to climate risk
- 5.1 Introduction
- 5.2 Ethical values, ESG and climate risk management
- 5.3 The investor role and division of labour between owner and manager
- 5.4 Investor perspectives on climate risk
- 5.5 Composition of the portfolio
- 5.6 Exercise of ownership
- 6 Climate risk and the Government Pension Fund Global
- 6.1 Different levels of analysis for different needs
- 6.2 The GPFG’s climate risk with a financial market perspective
- 6.3 The GPFG’s climate risk with a broader societal perspective
- 6.4 Overall management framework
- 6.5 Norges Bank’s responsible investment
- 7 Recommendations
- 7.1 Introduction
- 7.2 The GPFG’s climate risk management from an international perspective
- 7.3 Basic assessments
- 7.4 Principles for managing the GPFG’s climate risk
- 7.5 Overall goals and investment strategy
- 7.6 Ownership strategies
- 7.7 Measurement, management and reporting
- 7.8 The way forward
- References
- Appendix A: Key words and phrases
- Appendix B: Mandate of the expert group
- Appendix C: Composition of the expert group