Norfund

Norfund assigns decision-making and oversight responsibility for its sustainability strategy the highest governance body. It has a stewardship policy that supports environmental transitions and social best practices in line with this strategy.

The institution discloses the monetary amount and/or share of products, services, and capital provided to usually excluded groups, as defined by the institution, and breaks down clients and/or beneficiaries by company size. Additionally, it discloses the monetary amount provided to small- and medium-sized enterprises as well as the amount provided to low-income and lower-middle-income countries.

The insitution describes the processes used to identify specific human rights risks and impacts associated with its offerings and publicly discloses the results of assessments of its products, services, and capital, which is presented in an aggregated manner. It also has a publicly available policy statement committing to respect ILO core labour rights and maintains a gender balance of 40-60% at the senior executive level.

Norfund discloses its strategy and impacts related to social and environmental topics but lacks evidence of a materiality assessment and prioritisation of identified impacts. While it sets targets in priority areas, there are no time-bound targets for material impacts. It is recommended that performance criteria for senior executive remuneration be linked to specific sustainability targets. The institution does not provide products or services to certain fossil fuel projects but does not address all fossil fuels. Although there is a climate mandate investment target, it is not time-bound or measurable. Financed emissions cover only 71% of the total portfolio, and monitoring of other scope 3 categories is recommended. Recommendations include disclosing client breakdown by income group, processes to avoid divestment from low-income countries, risk assessment for ILO fundamental rights, and mitigation processes for identified risks. Additionally, it is suggested that the institution identify social risks related to the net zero transition and provide examples of actions taken regarding salient human rights issues from assessments in the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.