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Sovereign Wealth Funds and Sustainable Development: A Case Study Based on Norwegian Government Pension Fund Global and Abu Dhabi Investment Authority

Author(s)

Yifan Meng, Giuseppe Telesca*

Affiliation(s)

School of Social and Political Sciences, University of Glasgow, Glasgow, Scotland, UK *Corresponding Author

Abstract

Sovereign Wealth Funds (SWFs), as long-term national investment vehicles, are regarded as pivotal forces in driving global sustainable development due to their substantial asset scale and long-term investment frameworks. This paper used the Government Pension Fund Global (GPFG) of Norway and the Abu Dhabi Investment Authority as cases, and through a comparison of their governance structures, investment strategies, and integration paths with the Sustainable Development Goals (SDGs), the unique roles and challenges of SWFs in promoting sustainable development were explored. The study found that GPFG achieved the large-scale application of sustainable investment through a stringent Environmental, Social, and Governance (ESG) framework and a dynamic adjustment mechanism; whereas ADIA promoted energy transition and industrial capacity upgrading in the Middle East by relying on regional cooperation and technology transfer. Although their paths differ, both cases demonstrate that the effectiveness of SWFs hinges on governance transparency, strategic positioning, and in-depth integration with SDGs. This study offers theoretical foundations and practical references for SWFs to optimize their sustainable development strategies.

Keywords

Sovereign Wealth Funds; Sustainable Development; ESG Framework; Resource Rents; SDGs Integration

References

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