Norges Bank is among the top ten shareholders at around half of the companies we are invested in, and we have found that companies listen to what we have to 2/6  BIS central bankers' speeches  say. Responsible investment – a chain of tools Chart: Responsible investment – a chain of tools Responsible investment is the most important tool in our work on climate risk and climate-related investment opportunities. I will now look at some important parts of this work. We are already doing a great deal, but we now plan to do even more. This work can be divided into three target areas: markets, companies and the portfolio. This results in a complete chain of tools. I will not review this work in detail here, but focus on a few key aspects. Establishing standards The first, establishing standards, concerns standards for reporting and measuring companies’ climate risk. Good common standards are important. They help us as an investment manager to assess companies’ prospects, prioritise our ownership efforts and make sound investment decisions. And not just us. Better reporting will also make financial markets function better and channel capital better. International standards provide consistency across markets and set the bar for all companies. We, and other large investors, have an important part to play in the development of such standards. One particularly important initiative we have supported is the climate reporting framework from the Task Force on Climate-related Financial Disclosures (TCFD).
Øystein Børsum: Ownership and climate risk in the Government Pension Fund Global (GPFG) – on the tools for addressing climate risk in the fund Speech by Mr Øystein Børsum, Deputy Governor of Norges Bank (Central Bank of Norway), Oslo, 21 December 2021. * * * Accompanying presentation:www.bis.org/review/r212312d_presentation.pdf Actual presentation may depart from the published text  Introduction Climate change is an issue that matters. Chart: Emissions must come down The global economy as it stands today is not sustainable. But it needs to be, and so emissions must come down. This is an issue for everyone – and not least the fund. With our broadly diversified, global portfolio and long-term horizon, in many ways we stand or fall with the global economy. Norges Bank is a financial investor. Our mission as the manager of the fund is to build and safeguard financial wealth for future generations. But the way we manage the fund can also have an impact beyond the purely financial, such as on the transition to a low-carbon economy. What our role should be – and what our work should involve – is what I will be discussing today. Back in the summer, an expert group delivered its report to the Ministry of Finance with recommendations for how climate risk should be addressed at the fund. Norges Bank has spent the autumn assessing these recommendations and how they might be implemented. This week, the Executive Board submitted its response to the Ministry.