Norwegian Sovereign Wealth Fund Pressures Miners on Environmental Performance

Norwegian fund

Norges Bank to engage Rio Tinto and South32 over Amazon bauxite mine

Norwegian wealth fund mining engagement is intensifying as the world’s largest sovereign wealth fund targets environmental risks tied to major mining firms. Norges Bank Investment Management (NBIM), which oversees Norway’s $1.8 trillion fund, announced it will engage Rio Tinto and South32 over serious environmental concerns related to their joint bauxite mining operations in the Amazon.

Environmental concerns prompt active ownership, not exclusion

While the fund’s ethics council recommended exclusion, NBIM chose instead to pursue active ownership over the next 5–10 years. The companies’ involvement in environmentally sensitive mining areas poses “an unacceptable risk” of severe damage, the fund noted. This shift signals a more interventionist strategy focused on influencing corporate behavior rather than immediate divestment.

Meanwhile, the fund reversed its 2020 exclusion of German utility RWE, citing credible progress on coal phase-out and renewable energy expansion. RWE will now remain under observation rather than full exclusion.

Climate alignment remains a key investment mandate

Norway’s finance ministry mandates that all fund investments align with the Paris Agreement’s net-zero goals. The fund reported a 30% reduction in financed emissions from 2017 to 2024 and has excluded or monitored nearly 200 companies, many tied to coal-related activities. The ongoing Norwegian wealth fund mining engagement reflects a broader climate-risk approach to portfolio stewardship.

The Metalnomist Commentary

Norway’s sovereign fund is signaling that climate accountability is no longer optional for global miners. By leveraging shareholder engagement instead of divestment, the fund aims to enforce ESG performance in high-impact sectors without relinquishing influence over corporate governance.