Norges Bank details first RFPs for raft of enviro equity mandates in euro2.5bn programme

Mandate sizes for each manager in the $50m-$250m range.

Norges Bank Investment Management (NBIM), the arm of the Norwegian Central Bank that runs the assets of the country’s NOK2,385bn (€280bn) Government Pension Fund, has announced the initial requests for proposals (RFPs) for one of the world’s biggest cash injections into green investments. NBIM is searching for asset managers for a raft of equity mandates in the renewable/alternative energy, clean technology and climate change sectors, including water, energy and natural resources briefs. The bank said individual mandate guidelines and sizes would be tailored to each investment manager, but typical initial funding levels for each brief would be in the $50m-$250m range. The equity mandates follow Norway’s announcement in October, 2009, that it would kick off a huge environmental programme by buying almost €500m of listed equities and bonds in environmental companies during 2010. The investments are the first steps in a programme announced in April 2009 to put NOK20bn (€2.5bn) into environmental companies over a five-year period. NBIM said it is currently focusing primarily on single country and sector mandates and thatit would consider large-cap, mid-cap and small-cap proposals. All mandates will be invested in listed equity only and are long-only portfolios. In the latest round of tenders, the bank has ruled out investing in SRI funds, balanced funds and non-listed or private equity funds. At the end of last year, the fund announced it had also begun working on climate issues alongside Sir Nicholas Stern, the author of an influential UK government report on the cost of global warming. Stern’s Grantham Research Institute at the London School of Economics was chosen by consulting firm Mercer to work on a joint project with the Norwegian fund looking at how global warming impacts capital markets and pension fund investors.
Last month it also emerged that NBIM was expanding its corporate governance team with a series of new hires. The planned appointments include a new head of core corporate governance issues to be based in Oslo within NBIM’s Ownership Strategies Department under Anne Kvam, NBIM’s corporate governance head.
Link to tender document