Norges Bank Investment Management (NBANK) H2 2024 earnings summary

Executive summary

• Achieved a total return of 13% in 2024, the highest in kroner ever, with a value increase of 3,985 billion kroner, bringing the fund's value to 19,742 billion kroner at year-end.

• Responsible investment efforts in 2024 focused on long-term value, climate action, transparency, and active ownership, with over 3,000 company meetings, 49 risk-based divestments, and significant progress on the 2025 Climate Action Plan.

• CEO pay alignment with long-term incentives and transparent compensation structures remained a priority, with 426 votes against misaligned pay packages.

• Recognized as the world's most transparent fund in responsible investing, with enhanced disclosure and voting transparency.

• Strong equity market performance, especially in technology, drove returns, while infrastructure for renewable energy posted a -10% return.

Financial highlights

• Return in kroner reached 2,511 billion, with high cash flow of 385 billion kroner in 2024.

• 11% of the equity portfolio invested in climate solutions, as measured by the MSCI Low Carbon Transition Score.

• 49 risk-based divestments and 16 reversals in 2024, with cumulative return impact of 0.64 percentage point since 2012.

• Equities delivered an 18% return, fixed income 1%, unlisted real estate -1%, and listed real estate 10%.

• 1,891 MW of renewable electricity generation capacity added to the portfolio in 2024.

Outlook and guidance

• Continued focus on financial materiality, long-term value creation, and engaging high emitters to achieve net zero emissions by 2050, in line with the 2025 Climate Action Plan.

• Ongoing expansion of renewable energy infrastructure investments and further integration of sustainability into investment processes.

• No major changes planned for voting guidelines or company expectations in 2025, with only minor adjustments anticipated.

• Emphasis on board accountability, climate risk management, and improved corporate governance standards globally.

• Strategy update ongoing, with continued focus on diversification and risk management.