Norges Bank Investment Management’s (NBIM) engagements are generating value among portfolio companies, according to its Head of ESG Risk Monitoring.
Speaking to RI, Christopher Wright said that larger companies who are exposed to institutional investors “may have stronger incentives to transition”.
“All of them won’t succeed, but we want to help them succeed, and we think this will drive value for the companies and also for us,” he continued.
Wright was keen to emphasise that engagement remained the key tool for NBIM, the manager of the Norwegian $1trn sovereign wealth fund, after it recently released figures show that the fund’s divestments have generated 41bp in relative returns cumulatively since 2012.
“We publish the relative return figure on the divestments, but it's hard to put a number on the value of engagements,” he said. “But we do believe they generate value, even if you cannot easily present an exact figure for this. Ou…