Historical archive

Report from the expert group on climate risk and the Government Pension Fund Global

Historical archive

Published under: Solberg's Government

Publisher Ministry of Finance

An expert group appointed by the Ministry of Finance has assessed the implications of financial climate risk and climate related investment opportunities for an investor like the Government Pension Fund Global (GPFG). The report was presented to the Ministry of Finance during a digital seminar on 22 August.

"Climate change caused by human activity is the biggest challenge of our time. The transition towards the low-carbon economy poses financial risk to a global investor like the Government Pension Fund Global. Insufficient understanding of climate-related investment opportunities also poses risk", says Minister of Finance Jan Tore Sanner (Conservative party).

The Ministry of Finance has launched an initiative to expand its knowledge base on how climate change, climate policy and the green transition may affect investors with the GPFG’s characteristics, including appropriate ways of handling this type of risk in the management of the Fund. The expert group’s report provides an important part of this work. The Ministry of Finance has as part of the initiative also received analysis and assessments from Norges Bank on the Fund’s exposure to climate-related risks and the investment opportunities associated with the transition to a low-carbon economy.

"The GPFG is the shared financial wealth of the Norwegian people and shall benefit both current and future generations. How climate change, climate policy and the green transition may affect the Fund, and how to approach such risk, are important and complex questions. Climate and environmental matters have for many years been a central part of the Ministry of Finance's work on the Fund investment strategy and framework. This report contributes to further strengthening of this ongoing effort. The Government and Ministry consider this a matter of high priority", says Sanner.

The expert group was appointed on 4 February 2021 and has consisted of Martin Skancke (leader), Kristin Halvorsen, Tone Bjørnstad Hanstad og Karin Thorburn. Thomas Ekeli has been the groups secretary. The expert group has been in contact with and received inputs from several interested parties and organisations.

The Ministry's assessments on how climate risk should be handled in the management of the Fund will be laid out in the white paper to Parliament due in the spring 2022.