To clarify, we understand the question to ask whether Folketrygdfondet has evaluated the potential impact of climate-related risks from events that can occur beyond the investment time horizon (e.g. migration due to the physical effects of climate change).
Folketrygdfondet’s mandate provides the starting point for the assessment of portfolio risk, including climate risk. As a long-term, active investor, Folketrygdfondet measures excess return relative to its benchmark index. As an active manager, Folketrygdfondet has the opportunity to adapt portfolio weightings in response to changes in the financial risk profile. For events that occur beyond our investment time horizon, these can be factored into our investment strategy only insofar as we are able to assess whether current market prices accurately reflect future climate risk. An example would be our assessment of companies within an industry with an uncertain decarbonization pathway, e.g. in which the technology required in 2050 is not yet available. Folketrygdfondet's role as an active manager in this case is to analyze (where possible) the extent to which our expectations about individual companies' ability to navigate this type of technological uncertainty are accurately reflected in current asset prices.