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Giant Norwegian and Dutch funds engage Chinese, Indian companies on water risks

Talks with mining and power companies

Norges Bank Investment Management (NBIM), the arm of the Norwegian central bank which manages the NOK3.7trn (€499bn) Government Pension Fund, has joined with its Dutch peer PGGM to engage with companies in India and China on water risks.

PGGM is the €125bn Dutch pension administrator with its roots in the healthcare and social work sector.

“NBIM in the quarter teamed up with Dutch pension fund PGGM to hold talks with mining and power companies in China and India,” Norges said in its new quarterly report released today (November 2).

“The dialogues aimed to improve the companies’ reporting on water-related risks.” A spokesman for the fund declined to give any further details of the engagements.

Water is one of NBIM’s six strategic focus areas for its ownership activities, alongside the equal treatment of shareholders, board accountability, efficient markets, children’s rights and climate risk.

It is a lead sponsor of the Carbon Disclosure Project’s water disclosure initiative, which released its latest report last month.“Companies should disclose metrics that show their exposure to water-related risks and opportunities, and that measure the performance of their water management strategy,” said NBIM’s Chief Risk Officer Jan Thomsen at the time.

“The dialogues aimed to improve reporting on water risks”

“This will provide important information for investors seeking to manage water-related risks and opportunities in their portfolios.”
The Government Pension Fund Global returned 4.7%, or NOK167bn, in the third quarter. The return was 0.03 percentage point lower than benchmark.
Meanwhile, it’s been reported that the fund has awarded a $300m mid- and small-cap Korean equities mandate to Truston Asset Management, the Seoul-based firm with more than $4.5bn under management. Link to NBIM