Despite their clout, most sovereign wealth funds shy away from social activism. Not Norway’s $415 billion Government Pension Fund–Global, the sovereign fund managed by Norges Bank Investment Management. NBIM has sought to enlighten companies on such issues as child labor and climate change. Now NBIM has discovered water.
In August it released a draft proposal that sets out the fund’s water-related expectations for companies in its vast portfolio and invites their comments. Principally, NBIM demands transparency on water issues, an assessment of water risk and, ultimately, implementation of sound supply-chain water management.
Fresh water, of course, has become a key global concern as economic growth and population expansion have driven demand while ....