Norges Bank rejects idea of standards for board sustainability skills
“Prescriptive requirements for directors’ ESG expertise will be difficult to implement and may impede board formation,” warns the investor.
Image: NPFire/Shutterstock
Sustainability is a key issue for boards but should it require specific boardroom skills? Not necessarily, according to one of the world’s biggest investors.
Norges Bank, Norway’s sovereign wealth fund with around $1trn under management, says it does not believe in “prescriptive” standards for specialist skills on boards, believing strict requirements are problematic.
The views come in a letter to the European Commission responding to a consultation on sustainable corporate governance.
Norges Bank’s view is that it should not. “Prescriptive requirements for directors’ ESG expertise will be difficult to implement and may
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