World’s largest sovereign wealth fund says green backlash is a chance for it to 'phase in' — not out

Norway's $1.6 trillion sovereign wealth fund says it will continue to advocate for investments based on environmental, social and governance (ESG) factors, brushing off the impact of a green political backlash.

It comes at a time when environmentally conscious investments have become a politically polarized issue in the Western world, particularly in the United States.

Republican lawmakers have decried ESG as a form of "woke capitalism" that seeks to prioritize liberal goals over investment returns.

Democratic lawmakers have sought to oppose that view, describing attacks on a range of ethically responsible business practices as "an attempt to manufacture a culture war and protect corporate special interests."

Analysts expect the outcome of this year's U.S. presidential election to determine whether the pushback against ESG investment strategies will have a deep and lasting effect.

Nicolai Tangen, CEO of Norges Bank Investment Management (NBIM), told CNBC that the country's wealth fund continued to advocate for the ESG agenda.

"We think it is part of long-term investing. You really need to care [about] the impact that companies have on the environment otherwise you're not going to make good long-term investing. So that's important," Tangen told CNBC's "Squawk Box Europe" on April 23.

"And we think the fact that some other people are pulling away gives us a better opportunity to kind of phase in. So, really interesting times."

BlackRock, the world's largest money manager, was estimated to have more than tripled its security spending on CEO Larry Fink in 2023, following criticism over the firm's stance on ESG investments, the Financial Times reported on April 21, citing a filing from the company.

NBIM manages the so-called Norwegian