The huge government fund that invests Norway’s oil revenue said on Tuesday that it was going to step up its efforts to persuade companies to slash their carbon dioxide emissions by 2050.
It’s the first time that the $1.2 trillion fund has set a date by which companies it invests in should be at “net zero,”
It means either they emit no carbon.
or offset their emissions by removing equivalent amounts of carbon from the atmosphere
The 2050 target aligns the fund, which has stakes in over 9,000 companies around the world
To limit the warming of the atmosphere to no more than 1.5 degree celsius, scientists calculate that the emissions have to reach net zero by 2050.
Nicolai Tangen stated, " if you dont have proper climate ambitions, you don't have a business".
He further stated, " With the way things goes on, you will not receive any loans from the bank".
You will not have any coverage in the insurance side, and also you won't have any people working for you".
Norway’s fund, like other big investors, is calling on companies to come up with credible plans to reduce their emissions.
Many large companies have targeted net-zero plans, but sometimes they lack ambition and details.
In such cases, funds often press boards and management teams to do more.
Norway's fund stated that it would sell the companies it deemed to be laggards.
Large oil companies in theory also have enough money to invest in technologies that can help slash emissions.