Natural Resource Funds and the Promotion of Environmental Protection through Socially Responsible Investment: An Evaluation of the Alberta, Norwegian and Nigerian Sovereign Funds
Date
2022-09-06
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Abstract
Environmental protection remains a burning global concern and different approaches have been developed to achieve it. Consistent with the dynamics of these approaches, the world has discerned the enormous potential of the financial sector in contributing to subsisting efforts towards the realization of environmental protection. Due to their huge capital strength, risk appetite and investment horizon, sovereign wealth funds are regarded as major financial actors. This research reveals that the major mechanism deployed by financial players, including sovereign wealth funds, in contributing to environmental protection is the making of socially responsible investments. With expatiation on the concept and principles of socially responsible investment in a manner that promotes environmental protection, this research focuses primarily on investigating the investment practices of the Nigeria Sovereign Investment Authority in comparison with those of the Norwegian Norges Bank Investment Management (which manages the Norwegian Government Pension Fund Global) and the Alberta Investment Management Corporation (which manages the Alberta Heritage Fund). By employing comparative, qualitative and doctrinal research methodologies, this research evaluates the legal, regulatory and governance frameworks of these three funds with particular attention on the Nigerian Sovereign Investment Authority. This research finds that while the Nigerian Sovereign Investment Authority lacks greatly in the implementation of its statutorily recognized obligation to make investments that contemplates environmental protection, the enabling statutory scheme of the Alberta Heritage Fund needs to be revisited to give legal force and credence to its policy implementation of socially responsible investment. The research further recommends that the Nigerian Sovereign Investment Authority create and implement policies that accommodate socially responsible investment in a fashion similar to the investment strategies adopted by the Norwegian Norges Bank Investment Management and the Alberta Investment Management Corporation.
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Keywords
Natural Resources, Environment, Energy, Socially Responsible Investment, Sovereign Wealth Fund
Citation
Tawoju, A. J. (2022). Natural resource funds and the promotion of environmental protection through socially responsible investment: an evaluation of the Alberta, Norwegian and Nigerian sovereign funds (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.