Urges NBIM to Simplify SBTi Approach
Norges Bank Investment Management (NBIM), the investment manager for the Norwegian government pension fund with assets totaling $1.7 trillion, has responded to a consultation by the Science Based Targets initiative (SBTi) about net zero standards. NBIM strongly supports companies in its portfolio to commit to SBTi standards aligned with net zero emissions by 2050.
In its 2025 Climate Action Plan, NBIM explicitly states that it will require high-emitting companies to set net zero 2050 targets urgently, and all companies in their portfolio must have these targets in place by 2040 at the latest. This commitment implies that NBIM endorses companies adopting science-based short-, medium-, and long-term emissions reduction targets consistent with limiting global warming to 1.5°C, which accords with SBTi's core framework.
Regarding the expansion and verification of SBTi net zero standards, while NBIM’s detailed stance is not fully specified in the provided search results, their emphasis on companies setting science-based targets aligned with net zero by mid-century suggests strong support for robust, credible, and verified climate commitments. This likely extends to favoring expanded and enhanced SBTi frameworks that increase the rigor and scope of these targets to ensure genuine emissions reductions.
On the use of carbon credits, the search results do not explicitly mention NBIM’s position. However, given NBIM’s focus on aligning investments with verifiable net zero targets and the broader industry trend—particularly among large institutional investors—for skepticism about over-reliance on carbon offsets without stringent verification, it is reasonable to infer NBIM would encourage careful use of carbon credits only when they meet high-quality standards and are part of a credible strategy prioritizing absolute emissions reductions. No direct evidence from the search results states their explicit policy toward carbon credits.
In summary, NBIM requires portfolio companies to commit to SBTi-aligned net zero targets promptly, strongly emphasizing transparency and accountability in their climate approaches. While not explicitly detailed in the available information, NBIM likely endorses expanding and verifying SBTi net zero standards to enhance climate integrity and probably supports cautious, high-integrity use of carbon credits as part of broader emissions reduction strategies.
It is worth noting that SBTi has become a key benchmark for corporate net zero commitments, with more than 4,000 companies worldwide having adopted its standards. However, the guidance for SBTi adoption, provided by NBIM, is considered a significant barrier to adoption due to its length, exceeding 100 pages.
Carine Smith Ihenacho, the chief governance and compliance officer, and Eivind Fliflet, head of the Environmental Team, Active Ownership, submitted NBIM's response to the consultation. The Science Based Targets initiative (SBTi) is still accepting responses to its consultation, which remains open until 1 June.
NBIM warned SBTi not to stray from its core function and instead 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 Science Based Targets initiative (SBTi) is a body that sets standards for companies to reduce greenhouse gas emissions in line with the goals of the Paris Agreement.
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The Science Based Targets initiative (SBTi) is currently reviewing its approach to net zero targets. NBIM did not comment on the contentious element of the debate: SBTi's approach to the use of carbon credits in meeting net zero goals.
- Norges Bank Investment Management (NBIM) is likely to favor expanded and enhanced Science Based Targets initiative (SBTi) frameworks, seeking to increase the rigor and scope of net zero targets to ensure genuine emissions reductions.
- In alignment with its emphasis on transparency and accountability, NBIM is likely to encourage companies in its portfolio to adopt science-based short-, medium-, and long-term emissions reduction targets in environmental-science, as part of their financial business strategies, with a view to limiting global warming.
