Norges Bank Investment Management (NBIM) has weighed in on a consultation about the Science Based Targets initiative’s (SBTi) net zero standards, cautioning the body against expanding its remit.
NBIM advised SBTi to prioritise the widespread adoption of net zero standards while refraining from the verification and enforcement of these targets. This is the core message NBIM — the $1.7 trillion investment manager for the Norwegian government pension fund — shared in its consultation response.
The consultation, launched by SBTi in March, is reviewing the organisation’s approach to net zero targets. With more than 4,000 companies worldwide having adopted SBTi standards, the initiative has become a key benchmark for corporate net zero commitments.
However, NBIM warned SBTi not to stray from its core function and cautioned against taking on the role of verifying corporate compliance. “Auditors, investors, regulators, and civil society may be better suited to assess performance and hold companies accountable to the targets they set,” wrote Carine Smith Ihenacho, chief governance and compliance officer, and Eivind Fliflet, head of the Environmental Team, Active Ownership, in their submission.
NBIM also criticised the current requirements for SBTi adoption, noting that the guidance — which exceeds 100 pages — presents a “significant barrier to adoption”.
However, NBIM refrained from commenting on one of the most contentious elements of the debate: SBTi’s approach to the use of carbon credits in meeting net zero goals.
While the manager has previously stated that it is not fundamentally opposed to the use of such credits, it emphasised that they must “represent additional and verified emission reductions”.
SBTi’s consultation remains open until 1 June.
