Norway's oil fund has climate risk data but won't act on it, Carbon Tracker report finds

A new report from Carbon Tracker finds that Norway's oil fund, NBIM, has built one of the most advanced climate and nature risk measurement frameworks in the world. But the fund has not used that data to shift its strategy away from fossil fuel investments. The report says a quarter of NBIM's equity portfolio is already exposed to severe physical climate hazards, yet the fund remains Europe's largest fossil fuel investor with over $70 billion in fossil fuel holdings. The gap between insight and action comes down to mandate limits from the Norwegian parliament, political expectations, and growing uncertainty in global climate policy. NBIM is bound by a return-focused mandate and has softened its engagement language on climate. Carbon Tracker says this shows voluntary investor action alone cannot fix market-wide mispricing of climate risk. Clearer policy signals from regulators are needed to close the gap between what the data says and what large investors actually do.