Norway is standing up for its sovereign wealth fund, the largest within the western world and the fourth greatest on this planet.
Whereas the tide is popping globally following the voting in of Donald Trump, with many countries now turning their again on environmental, social, and company governance (ESG) insurance policies the Scandinavian nation stays steadfast. However Norway can afford to not kowtow to US insurance policies and fund managers eager to follow the Trump line.
The important thing to Norway having such a big sovereign wealth fund despite solely having a five-and-a-half million inhabitants (round 60 p.c the dimensions of London) lies not solely in its oil and gasoline reserves and canny tech investments, however in its legislation that prohibits spending of these funds above 3 p.c yearly.
And of that small quantity the Financial institution of Norway is permitted to speculate, and regardless of continued stress to diversify funding away from non-ESG ventures, Norwegians will not be listening as a result of they’ll afford to.
The quantity Norway has managed to maintain within the cast-iron piggy financial institution is at present stated to be sufficient to pay public pensions for the following 120+ years.
The irony of their wealth coming from oil and gasoline is that they’re utilizing it to maneuver away from fossil gasoline dependency. For instance, automobile gross sales in Norway are anticipated to achieve 100% electrical automobiles within the subsequent few months, a pattern that might doubtlessly chunk the hand that feeds them. However Norwegians stay unfazed. For Norwegians, the most important half that is weaning the world off oil and gasoline is the precedence.
