OSLO, Feb 6 (Reuters) - Norway's sovereign wealth fund will persist in addressing environmental, social, and corporate governance (ESG) matters with its invested companies, including those in Big Tech, despite recent opposition against ESG initiatives, a senior fund official announced on Thursday.
There has been a growing trend of resistance to discussing topics like diversity and climate change in corporate boardrooms.
This trend has escalated with the election of U.S. President Donald Trump, who has shifted focus on diversity, equity, and inclusion (DEI) during his initial weeks in office.
We are in the midst of a transformation: it affects the market, companies, and investors, stated Carine Smith Ihenacho, Chief Governance and Compliance Officer of the $1.8 trillion fund, during a press conference.
"For us, ESG has always revolved around financial relevance and long-term value creation.
This is the dialogue we engage in with companies, and it is a dialogue we will continue with ... companies.
Ihenacho also mentioned the fund's interactions with major tech corporations in a subsequent conversation with Reuters.
We have engaged in discussions regarding misinformation, product usage, responsible AI deployment, and I believe they still seek a positive relationship with their investors, she noted.
The fund holds stakes in almost 9,000 companies globally, with nine of the top ten equity holdings in its portfolio comprising tech firms such as Apple, Microsoft, and Nvidia.
According to fund data, tech investments represented 19% of the total portfolio by the end of 2024.
Despite being a minority shareholder in major tech entities, Ihenacho stated that the fund approached its interactions with them with "a sense of humility." She emphasized that they had good access and maintained a constructive dialogue overall.
We have had specific conversations, and we will continue to do so, on child safety online. These discussions will continue with major tech companies, she assured.