Norway’s $1.8 trillion sovereign wealth fund divested from 49 companies in 2025 due to sustainability concerns, a decline from 86 the previous year, as it maintains its ESG focus despite growing global opposition to ESG reporting.
At the end of 2025, 74% of financed emissions from companies in the fund’s portfolio were covered by 2050 net zero targets, according to its annual sustainability report released by Norges Bank Investment Management (NBIM) on Thursday.
The fund, which manages Norway’s oil and gas wealth, aims for all companies in its portfolio to reach net zero emissions by 2050. Last year’s divestments included five companies linked to climate risk, 15 companies with poor human rights risk management, and eight companies flagged for anti-corruption concerns.
The fund also cast votes at over 11,000 shareholder meetings, opposing management in 5% of resolutions, citing issues such as executive pay and board independence.
“Many companies see the energy transition as an opportunity,” said Carine Smith Ihenacho, Chief Governance and Compliance Officer at NBIM. “While this progress is encouraging, the transition must accelerate, supported by coherent policy measures.”
The report comes amid growing resistance to ESG regulations, particularly in Europe, where business leaders and lawmakers argue compliance costs are making companies less competitive compared to counterparts in the US and Asia. Some warn that economic stagnation in the EU could worsen if President Donald Trump implements further deregulation in the US.
Despite these challenges, Norway’s sovereign wealth fund continues to prioritise climate risk, human rights, and corporate governance in its investment decisions.
