Norway's $2 Trillion Wealth Fund Maintains Net Zero Pressure Amid U.S. Climate Pushback

Norway's $2 trillion sovereign wealth fund is intensifying efforts to ensure the 8,500 companies in its portfolio achieve net-zero greenhouse gas emissions by 2050, expanding its focus to include Scope 3 emissions across companies' supply chains. This strategy, aligned with the Paris Agreement, includes increased scrutiny of corporate lobbying on climate change and the potential to vote against company boards that do not align with the fund's climate goals. Despite holding about half of its assets, roughly $1 trillion, invested in the U.S., the fund is pushing ahead with these measures amid growing backlash in the United States, where climate policies are being rolled back and fossil fuel production is being promoted under President Trump. The fund prioritizes engagement over divestment and aims to use its significant shareholder influence to drive corporate accountability and transition plans. This move highlights a stark contrast between Norway's proactive climate stance and the U.S.'s regulatory rollback, underscoring a transatlantic divide in climate governance. Observers recognize the fund as a "shareholder superpower" capable of shaping global corporate norms, especially as it targets firms with the largest emissions footprints for board-level dialogues and shareholder proposals.