New report reveals surprising strategy from major investment fund: 'Remains committed'

Norway's sovereign wealth fund is keeping its sights on environmental, social, and governance investments, according to Bloomberg.

A recent report from Jefferies Financial Group said that Norges Bank Investment Management, which manages $1.9 trillion in assets, "remains committed."

While the term ESG has been vilified politically, it remains a key factor in financial portfolios. It's easy to misconstrue ESG as investments in sectors like renewable energy. As far as the environment is concerned, ESG simply means investors are taking into account climate risks. ESG investing isn't designed to save the planet; it is still about generating a return to shareholders.

It's important to remember that Norway's sizable fund has its origins in the oil and gas sector. That said, fund managers have been explicit in pursuing environmentally friendly investments thanks to the political forces that steer their sovereign wealth fund. While it has not been perfectly consistent in meeting these goals, NBIM recently divested from 28 companies for poor ESG performance.  

Putting your money toward a greener future is not only possible, but it's profitable, too. Polluting oil and gas companies are steadily becoming less attractive vehicles, while money is pouring into solar, wind, and other sustainable industries. When public funds are on the line, as in Norway's case, being mindful of where those funds go is doubly important. Fossil fuel investments are likely to burn the public in these cases. 

Norway is far from alone in its sensibilities. This report from Jefferies follows on the heels of Japan's sovereign wealth fund stating it is equally committed to continuing to apply ESG standards to its investments. That report said that "capital markets are not free from sustainability-related risks, such as environmental and social issues in the long run."

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.

Cool Picks

How the Expedia of solar panels helps homeowners save money and avoid a common trap: 'Giving you confidence in the systems'

Major brand unveils ultra-efficient appliances to lower your bills every month: 'A new benchmark in efficiency and performance'

New analysis reveals next-gen HVACs can save homeowners over $10,000 — here's how to buy one with government incentives

This innovative company will install solar panels on your roof with no upfront costs — here's how its business model works