Tightening the chain : How the Norwegian Government Pension Fund can make investments more responsible

The Norwegian government pension fund is the largest sovereign wealth fund in the world today, holding values of more than 7800 billion Norwegian Kroner. The fund has chosen a responsible investment strategy that relies heavily on company dialogue, but what happens when companies fail to change behavior and live up to the expected standards that the fund has for its investments? This thesis investigates the tools the fund has in place to ensure that investments are made responsibly, with special attention paid to the expectations document on water. Comparing the practices of the fund with other investors, and using input from civil society actors as well as actors previously involved in the development of responsible investment practices of the fund, this thesis discusses how the fund can strengthen its responsible investment strategy further. The conclusions suggest that more transparency regarding the implementation of the responsible investment strategy is needed if the fund is to strengthen this strategy. It is also necessary for the different tools in the investment strategy to be more closely connected. Finally, this thesis proposes six policy recommendations that can be considered by the fund in developing its responsible investment strategy.M-D