Remove 2012 Remove Divestment Remove Value Creation
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NBIM Divestments Driven by Social, Governance Risks

Chris Hall

More than half of divestments by Norges Bank Investment Management (NBIM) last year were the result of unacceptable social and governance-related risks. This can escalate action to voting, and, when necessary, resort to risk-based divestment. Since 2012, this strategy has increased the cumulative return on equity management by 0.44

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Focus on Outcomes

Chris Hall

The firm’s valuation multiple increased over time, trading anywhere from 10 to 15 times earnings from 1995 to 2012. “As Plus, we have aligned the KPIs with value creation,” he added. For example, NextEra Energy is a utility company that has slowly built out its renewable generation capacity.