The UK's National Wealth Fund: Lessons from Norway

This piece considers the UK's new National Wealth Fund. The purpose of the UK fund is to invest in infrastructure, renewable energy, and green technologies using public as well as private investment. It is argued that the fund's effectiveness would be strengthened if it was legally obliged to prioritise environmental, social, and governance (ESG) considerations in its investment calculus. As it stands, the ESG imperative of the fund is an ambition. However, if this ambition were made a legal requirement as it is in Norway where a similar fund exists, then it would arguably gain greater legitimacy in the eyes of investors. It is recommended that ESG assessments for the purposes of the fund should be delegated to an independent body of experts as Norway has done in respect of its fund. This would arguably reduce the risk of ESG decision-making in relation to the fund being influenced by shifting political priorities at a time when ESG has become a political football.