Advocacy by NBIM for SBTi to adopt a straightforward approach
In a recent response to the Science Based Targets Initiative (SBTi) consultation on net zero standards, Norges Bank Investment Management (NBIM) - the $1.7 trillion investment manager for the Norwegian government pension fund - has shared its views on the future of corporate net zero commitments.
Carine Smith Ihenacho and Eivind Fliflet, authors of NBIM's submission, emphasised the importance of driving widespread, meaningful action over technical perfectionism. The submission did not express an opinion on SBTi's approach to carbon credits, which is one of the most contentious elements of the debate surrounding net zero goals.
NBIM's stance on carbon credits, as stated in the current context, is that they must represent additional and verified emission reductions. This aligns with the organisation's previous statements, where it has not been fundamentally opposed to the use of carbon credits but has emphasised their need to be genuine and verifiable.
In the submission, NBIM suggested that auditors, investors, regulators, and civil society may be better suited to assess performance and hold companies accountable to the targets they set. The organisation cautioned SBTi against expanding its remit to include verification and enforcement of these targets.
The Science Based Targets Initiative (SBTi) has become a key benchmark for corporate net zero commitments, with more than 4,000 companies worldwide having adopted its standards. The initiative is currently reviewing its approach to net zero targets, and the consultation process for its net zero standards remains open until 1 June.
NBIM advised SBTi to prioritise the widespread adoption of net zero standards, emphasising the need for clear and accessible guidance that encourages participation from a broad range of companies. The guidance provided by NBIM, which spans over 100 pages, has been criticised for being overly extensive, presenting a significant barrier to adoption.
Despite the criticism, NBIM's response to the SBTi consultation underscores its commitment to climate action. The organisation aligns its portfolio companies with net zero emissions by 2050, integrates climate considerations into investment decisions, and engages with companies for net zero targets and transition plans.
However, for a more detailed stance on NBIM's views on SBTi's standards or carbon credits, it would be necessary to consult direct statements or reports from NBIM regarding these specific issues.
- The environmental science of climate-change requires significant finance and business investment to achieve net zero targets, a view supported by Norges Bank Investment Management (NBIM) in their submission to the Science Based Targets Initiative (SBTi).
- Aligning with its previous statements, NBIM emphasizes that any use of carbon credits in environmental-science must represent additional and verified emission reductions, a crucial factor in driving widespread, meaningful action towards net zero goals.
