Report claims major wealth fund is straying from critical financial commitments: 'Far less consistent'

Norway's Government Pension Fund Global — the world's largest sovereign wealth fund — is failing to achieve its climate goals by voting against critical environmental resolutions during the annual shareholder meeting season, according to Reuters.

What's happening?

The news outlet reported that Norway's oil and gas revenue is funneled into the nearly $2 trillion investment fund. The fund has investments in 9,000 companies and has set a goal for them to achieve net-zero emissions by 2050, which honors the Paris Agreement.

To achieve this target, the fund's management, Norges Bank Investment Management, tells corporate boards what it expects on climate policies and votes at meetings on resolutions.

However, according to a new report by Norwegian NGO Future in Our Hands, the fund is missing the mark on hitting its climate commitments. The report investigated the fund's voting record on 21 climate goals at 17 companies, including Shell and TotalEnergies, during the shareholder meeting season.

It found that the fund failed to vote in support of 17 out of 21 climate resolutions that three environmental lobby groups said were important.

"They are far less consistent when it comes to voting on the limited number of climate resolutions put forward at the most critical companies that can influence the energy transition away from fossil fuels," Lucy Brooks, a sustainable finance advisor at the NGO, told Reuters.

Watch now: How the NBA is making layups in the sustainability game

"They do not ensure that their votes align with the expectations laid out in their own climate action plan."

Why is this important?

If wealth management funds don't do their part to support climate goals and ensure their actions align with the Paris Agreement, it could be disastrous for the planet. At a time when the consequences of rising temperatures and pollution are becoming more apparent than ever, it's critical for companies to uphold their end of the bargain to bring the planet back into balance.

Companies that fail to follow through with environmentally responsible actions are endangering not just countless communities across the globe but animals and ecosystems as well. If we're going to hit our climate targets, everyone must be on board, including large companies and investors.

🗣️ Do you think America could ever go zero-waste?

🔘 Never 👎

🔘 Not anytime soon 📅

🔘 Maybe in some states 🇺🇸

🔘 Definitely 👍

🗳️ Click your choice to see results and speak your mind

What's being done about it?

According to the Reuters report, the fund's management can divest from companies that don't respond to its expectations on climate goals. Environmental advocacy groups and university students are starting to call out controversial investments that are doing more harm to the Earth than good.

Some positive actions we can take are donating to climate causes, investing in clean stocks, and upgrading to a green 401K. Putting our money where our mouth is can show polluting companies that it's time to start putting people and the environment over the endless pursuit of profits.