One of the world’s biggest investors outlines nature expectations for issuers

NBIM says the document will form the basis of engagement with its 7,000 portfolio companies

Norway’s $2trn sovereign wealth fund has set out its expectations for companies when it comes to nature. 

Norges Bank Investment Management (NBIM), which has shares in more than 7,000 companies across 60 countries, outlined eight “core expectations” for the management of biodiversity and natural resources. 

The document will underpin its shareholder engagement, including director elections. 

NBIM acknowledged that businesses had different “starting points”, but said all firms should set targets on their most material nature-based impacts and dependencies, along with time-bound plans to achieve them – which should ideally be integrated into climate transition plans. 

“This plan should include the scope of each target, including business units, products, locations that will be affected, and the implementation strategy detailing specific actions that will be taken to achieve the targets, and assumptions made,” NBIM wrote. 

There should be “an appropriate level of geographic and operational detail” including “coordinates and footprint of main operations with proximity to protected areas, critical habitats or water-stressed regions”.  

Infrastructure firms and those involved in resource extraction should commit to achieving no net-loss or net positive impact on biodiversity, according to the expectations. 

“This should include the full lifecycle of their activities, from environmental impact assessments to continuous monitoring, and responsible decommissioning at end of life,” NBIM said.  

Companies should also explain the “processes for reviewing and revising targets” and the reason for making any revisions to existing ambitions. 

The fund is a champion of both the Taskforce on Nature-related Financial Disclosures and the International Sustainability Standards Board.