Norway’s $2.3-Trillion Fund Opposes SEC Idea to Rescind Climate Reporting

Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, has voiced opposition to the U.S. Securities and Exchange Commission's proposal to eliminate climate-related reporting requirements. The SEC introduced a proposal in May, seeking feedback on scrapping the Final Rules that mandate climate-related disclosures in registration statements and annual reports.

The Government Pension Fund Global, also known as 'Norway's oil fund,' is a significant shareholder in numerous major companies worldwide, including several oil and gas firms. Established in the 1990s, the fund now owns an average of 1.5% of all listed companies globally, with Norges Bank Investment Management (NBIM) managing its assets.

NBIM published a letter to the SEC expressing its stance on the proposal, stating that the fund does not favor a complete revocation of the Final Rules. NBIM supports the existing framework's materiality standard, which requires disclosure of climate-related risks when they significantly affect a company's financial condition. The fund's Chief Governance and Compliance Officer, Carine Smith Ihenacho, emphasized the value of the Final Rules in providing a structured framework for identifying, managing, and reporting climate-related risks in company governance, strategy, and financial statements.

NBIM believes that alternative solutions could address the Commission's concerns about scope and cost while maintaining a baseline of financially relevant disclosures. As of the end of 2025, NBIM managed over $2 trillion in assets, with the United States comprising 53% of its total investments. Within its equity portfolio, $822 billion was invested in shares of 1,306 U.S. public companies, making NBIM a minority shareholder with an average ownership of 1.2%.