Norwegian Sovereign Wealth Fund Against BP Climate Resolution

Norway’s $1.4 trillion sovereign wealth fund, one of the world’s largest investors, announced Saturday it would vote against a resolution calling on British oil major BP (BP.L) to adopt stricter greenhouse gas targets.

Although BP is already aiming to reduce emissions, the motion filed by activist group Follow This ahead of an April 27 shareholder vote calls on the company to comply with the Paris climate agreement’s goal of limiting global warming.

NBIM reneges on its commitments

Norges Bank Investment Management (NBIM), which manages the Norwegian fund, said last year that it planned to take a tougher stance on companies that fail to adopt credible climate plans. She did not give a reason for denying the motion, but has stated in the past that she sometimes supports environmental, social, and governance (ESG) proposals put forward by activist groups, but carefully evaluates each case on its merits.

Follow This said in an email statement that NBIM, as a major investor, should show leadership on climate issues. “NBIM failed the first real test of its new climate vote policy,” wrote Follow This founder Mark van Baal. The Norwegian fund, itself built on oil and gas revenues, owned 2.73% of BP shares worth about $2.8 billion at the end of 2022.

Other actors against this resolution

BP’s board of directors recommended that shareholders vote against the resolution, saying it was “unclear” what it wanted the company to do. Investment advisors ISS and Glass Lewis also recommended that BP shareholders oppose the resolution, while the UK Local Authority Pension Fund Forum (LAPFF) asked investors to support it.

In February, BP reneged on plans to cut its 2019 oil and gas production by 40% by 2030, and now plans a 25% reduction, angering climate activists.