Oslo, Norway — Norway’s sovereign wealth fund said Wednesday that it would incorporate artificial intelligence tools into its investment analysis process to avoid losses stemming from climate change.
The sovereign fund, the world’s largest, is sustained by Norway’s vast oil and natural gas reserves, but it pushes the companies it invests in to take action against environmental risks including global warming.
In its new climate action plan for 2030, the fund’s head of active ownership, Wilhelm Mohn, said AI along with its own analysis tools would allow it to “streamline processes and enhance decision-making”.
“Data quality and availability has always hampered sustainable finance, and AI can really help us overcome it,” he told journalists.
Managed by Norway’s central bank Norges Bank and with a value of around $2 trillion, the fund urges the more than 8,600 companies it invests in worldwide to commit to net-zero carbon emissions by 2050.
But it will also sell its stakes if firms generate what it considers excessive emissions, or it deems their operations too risky for the environment.
“Climate change remains a financial risk and that risk has only grown,” said Carine Smith Ihenacho, the fund’s chief governance and compliance officer.
Some activist groups welcomed the fund’s new climate goals while urging it to do more.
“Much of the plan focuses on refining analytics, disclosure and engagement — all important tools,” said Brynn O’Brien, executive director of the Australasian Centre for Corporate Responsibility.
“What’s missing is a shift from describing the risk to actively helping to reduce it,” she said.
