Norway’s sustainability paradox underscores the need for double materiality

illuminem

May 13, 2025

https://www.linkedin.com/feed/update/urn:li:activity:7328629180600893440/:

In this Op-Ed for illuminem, I touch upon a #doublemateriality storm hitting Europe. All money pipelines beware!

The Norwegian Sovereign Wealth Fund – the world’s largest – having assessed 96% of its portfolio for #naturalcapital risk, now runs into this storm. Like it, this development will compel other entities to evaluate both sustainability impacts on financial performance and #societal/#environmental effects.

Norway recently awarded stakes in 53 offshore #oil and #gas exploration to 20 companies. According to its energy ministry, the next round would focus on the hyper sensitive Arctic region.

The International Energy Agency (#IEA) has opposed Norway’s plans to expand its petroleum production. Stating that “no new fossil fuel production projects are compatible with limiting global warming to 1.5C.”

The Norwegian government has also announced that 1406 #whales can be slaughtered this year – an increase from 1,157 individuals in 2024 – despite the demand for whale meat falling in the country.

“The disproportionate killing of pregnant female minke whales is particularly alarming”: says Katie Hunter. The whale hunting issues in Norway highlight the challenge of balancing economic activities with environmental care.

Double materiality demands not only portfolios are not unduly impacted by natural capital but also do not adversely impact natural capital. All eyes will now be on Norway’s sustainability paradox.