31/03/2011 (Reuters) - "The manager of the (fund)...has published documents which present the fund's expectations of how companies should manage, amongst others, climate risk," Malkenes said. "The exercise of ownership is another way the fund can seek to achieve behavioural change in the portfolio."

The official added that the fund had invested over $4 billion in areas of water management and clean energy, without giving details.

Norway has been among the forerunners in combating climate change with its $1 billion each to Brazil and Indonesia, where large tracts of rainforests remain standing but are at risk of getting logged.

In Norway's deal with Indonesia, a top palm oil producer and a big CO2 emitter, the aid comes in exchange for a two-year moratorium on forest clearing.

But laws for the ban have yet to be formalised as the government has to thrash out details with the powerful palm oil and logging lobbies that bring in billions of dollars to the Southeast Asian country. ($1 = 5.598 Norwegian Crowns).