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Norwegian Government Pension Fund Global (Norwegian Ministry of Finance and Norges Bank Investment Management)

PRI reporting framework 2017

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ESG incorporation in actively managed listed equities

Implementation processes

LEI 03. Percentage of each incorporation strategy

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
100 %
Total actively managed listed equities 100%

03.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

Primary reasons for choosing particular ESG incorporation strategy, include:
- Portfolio size
- Portfolio time-horizon
- Portfolio diversification

The three ESG incorporation strategies have the following coverage in the portfolio:

- Screening: Various screening tools are applied, some are portfolio wide, and some are more sector relevant
- Thematic:  Environment related investment mandates, totalling 53.8 billion Norwegian kroner NAV at 31.12.2015 and green bonds portfolio of 5.7 billion Norwegian kroner at 31.12.2015
- Integration: In general, integration applies to 100 % of the fund's listed equity portfolio.

03.3. Where assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

LEI 04. Type of ESG information used in investment decision (Private)

LEI 05. Information from engagement and/or voting used in investment decision-making (Private)

(A) Implementation: Screening

LEI 06. Types of screening applied

06.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by


The Ministry of Finance has appointed the Council on Ethics for the Government Pension Fund Global, an independent council established to research and evaluate companies and provide recommendations on exclusion or observation ( The recommendations are based on either product or conduct, and are described on the Ministry's web pages:

The Executive Board of Norges Bank decides on observation and exclusion of individual companies, based on a recommendation from the Council on Ethics. In such cases, the Bank may also consider using other tools in its ownership work. The aim is to establish a unified chain of available tools for responsible investment management.

NBIM may also choose not to invest in certain companies or groups of companies/sectors. NBIM has gradually increased the scope of risk-based divestments, both geographically and thematically. In total, NBIM have divested from 187 companies in the past four years. There is a specific process within NBIM where countries are approved ahead of investments. More information is given in the report on "Responsible Investment 2015":

Screened by

          Criteria for exclusion endorsed by the Norwegian parliament if there is an unacceptable risk of conduct that is considered grossly unethical.


Criteria for observation and exclusion that have been endorsed by the Storting – the Norwegian parliament. These criteria relate to

1) specific product types and entail that the fund must not invest in companies which themselves, or through entities they control, produce weapons that violate fundamental humanitarian principles through their normal use, produce tobacco, or sell weapons or military material to certain countries.

2) if there is an unacceptable risk of conduct that is considered grossly unethical.

06.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.


LEI 07. Processes to ensure screening is based on robust analysis

07.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

07.2. Additional information. [Optional]

LEI 08. Processes to ensure fund criteria are not breached (Private)

(B) Implementation: Thematic

LEI 09. Types of sustainability thematic funds/mandates

09.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

09.2. Describe your organisation’s processes for sustainability themed funds. [Optional]

(C) Implementation: Integration of ESG issues

LEI 10. Review ESG issues while researching companies/sectors

10.1. Indicate if E, S and G issues are reviewed while researching companies and/or sectors in active strategies.

ESG issues

Coverage/extent of review on these issues





Corporate Governance

Corporate Governance

10.2. Additional information. [Optional]

LEI 11. Processes to ensure integration is based on robust analysis (Private)

LEI 12. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

12.1. Indicate which aspects of investment analysis you integrate ESG information into.

12.2a. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis and/or portfolio construction.

12.3. Describe how you integrate ESG information into portfolio construction

We take a systematic and aggregated approach to risk monitoring at the portfolio level.  Aggregated risk assessments can lead to adjustments to the portfolio, or restrictions affecting specific markets, sectors, or groups of companies. Such assessments facilitate the identification of high-risk areas of the portfolio, either on a stand-alone basis or based on a particular theme.

12.4a. Describe the methods you have used to adjust the income forecast / valuation tool

Estimations of the sensitivity of different sectors and companies to certain factors, such as the sensitivity of oil and gas exploration and production (E&P) companies to scenarios for carbon pricing. These sensitivities are then overlaid against the portfolio in order to assess the potential financial risk at different scenarios.

12.5. Additional information.