the risk assessment and hence in the overall assessment of the capitalization and funding of financial institutions uncertainty with respect to the magnitude and impact of climate change can lead to simplified assessments of its risks. authorities, including central banks, may contribute to a knowledgebased debate and reduce uncertainty by strengthening and refining reporting requirements. a common basis of information and analysis may facilitate assessment and comparison of climate risk in individual institutions, and lead to a more correct pricing of risk. international cooperation could be fruitful in this work, including in the ngfs context. responsible investment at norges bank in its role as the gpfg ’ s owner, the norwegian ministry of finance specifies the investment universe, benchmark index, risk limits, and requirements. norges bank shall make investment 1 / 3 bis central bankers'speeches decisions and exercise ownership rights independently of the ministry. within this framework, norges bank works on climate risk across the gpfg ’ s three asset classes – listed equities, listed bonds, and unlisted real estate – within a general framework of objectives. by end - june 2019, the total market value of the fund was close to usd 1. 1 trillion, corresponding to more than three times mainland gdp of norway. the united states is by far the greatest receiver of funds, amounting to 41 percent of the total. to spread risks and capture global growth, the assets were invested in over 9, 000 companies in more than 70 countries. we benefit from free and open markets that enable an efficient global allocation of resources. the objective is to achieve the highest possible return with acceptable risk. responsible investment supports this in two ways. first, it seeks to improve the long - term economic performance of the investments. second, it seeks to reduce the financial risks associated with environmental, social and governance ( esg ) practices of companies in the portfolio. as such, the focus is on material esg issues that impact the fund ’ s long - term performance. these issues are captured in three responsible investment pillars. first, establishing principles : a set of international principles and standards from the un and the oecd provides a framework for the bank ’ s work with companies and other stakeholders. priorities are based on the mandate and are characterised by formulating expectations of companies, guidelines for voting, and positions on governance issues. documents communicate the bank ’ s priorities and ensure predictability. second, active ownership : voting at annual general meetings is the most important tool for active ownership. through its voting,

the bank seeks to strengthen governance, improve financial performance and promote responsible investment practices. the voting guidelines provide a principled basis for voting decisions, but also take account of company - specific factors. in the bank ’ s dialogue with the largest companies, governance and sustainability topics relevant to long - term return are raised. this includes risks and opportunities associated with climate change, and the bank expects companies to integrate material climate risks into their strategies, risk management and reporting. third, investing sustainably : the ministry of finance has given us dedicated environment - related mandates. going forward, these mandates will include investments in unlisted infrastructure for renewable energy. next, in certain cases we divest from companies that impose substantial costs on other agents, with the aim of reducing the fund ’ s exposure to unacceptable risks. finally, our political authorities provide guidelines that specifies that certain investments should be excluded from the fund due to ethical concerns. these exclusions include companies responsible for large - scale environmental damages, and companies whose business models relies heavily on thermal coal.. specific central bank challenges in policy portfolio management aside from the gpfg, norges bank, as other central banks, also manages policy portfolios. the bank ’ s foreign exchange reserves amounted to usd 64 billion at end - june 2019, divided into a 80 % fixed - income portfolio and a 20 % equity portfolio. the equity portion is invested in around 1, 500 companies worldwide, with a focus on the larger markets and currencies, and managed according to similar principles governing responsible investment in the gpfg. the investment of the major part of the fx reserves is to a high degree determined by our central banking policy objectives. consequently, we face specific challenges in any extension of responsible investment practices. first, this relates to respecting our legal policy mandate in the investment of our fx portfolio. second, our investments must take due account of liquidity needs for monetary and financial stability purposes, as well as international financial commitments to the imf. third, we need to be vigilant to safeguarding independence and preventing conflicts of interest. and finally, while we are a transparent central bank, we need to strike a considered balance between transparency and remaining needs of confidentiality, to avoid undermining our 2 / 3 bis central bankers'speeches primary policy objective. international cooperation to conclude, like in other policy areas, there is a crucial role to play for international cooperation also in the field of climate risk. norges bank became a member of the ngfs in