Norway’s $1.9 Trillion oil fund cuts stakes in energy supermajors

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🗞️ Driving the news: Norway’s $1.9 trillion Government Pension Fund Global has reduced its equity holdings in major international oil companies, including ExxonMobil, Shell, Chevron, BP, and TotalEnergies, amid falling oil prices
• The adjustments, disclosed in the fund’s H1 2025 report, reflect a cautious recalibration of energy exposure, with energy now accounting for just 2.9% of its equity portfolio

🔭 The context: Created in the 1990s using revenues from Norway’s oil and gas sector, the fund is one of the world’s largest sovereign wealth vehicles and a major institutional shareholder in global energy firms
• While the fund has historically supported fossil fuel investments, it has increasingly shifted its strategy in response to financial volatility, political risk, and climate considerations
• Recent years have seen growing internal and external pressure to align the fund’s portfolio with Norway’s climate commitments

🌍 Why it matters for the planet: The fund’s reduced stakes in Big Oil reflect a broader recalibration of fossil fuel investment by institutional investors
• This signals a shift in capital allocation that could reshape energy markets and accelerate momentum toward cleaner energy
• However, as long as the fund remains significantly tied to fossil fuel revenue, questions remain over its long-term alignment with global decarbonization goals

⏭️ What's next: Investors and climate advocates will closely watch whether Norway’s oil fund continues to divest from fossil fuels or reinforces engagement strategies
• The fund’s next moves could influence global norms on sustainable investing
• A more decisive pivot away from hydrocarbons—combined with increased green finance allocations—would align the fund more visibly with net-zero pathways

💬 One quote: “Political decisions, especially in the US, led to increased uncertainty and considerable volatility in fixed-income markets,” noted Norges Bank Investment Management, highlighting the fund’s risk management rationale

📈 One stat: The fund trimmed its stake in ExxonMobil from 1.46% to 1.32%, reducing its valuation to $6.12 billion as of June 30, 2025

See on illuminem's Data Hub™ the sustainability performance of Shell, Chevron, and TotalEnergies

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