Decisions on observation and exclusion

Norges Bank has decided to place one company under observation, follow up one company through active ownership, and revoke the exclusion of one company.

3 March 2021

The Executive Board has decided to place the company Kirin Holdings Ltd Co under observation due to unacceptable risk that the company contributes to serious violations of individuals’ rights in situations of war or conflict, ref. the conduct-based criteria in section 3 (1) (b) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. The Council on Ethics has recommended to place the company under observation based on Kirin’s business cooperation with an organisation with ties to the military in Myanmar. Kirin has recently announced an intention to end this business cooperation, and the implementation of this will be followed up as a part of the observation.

Further, the Executive Board has decided to follow up the company ThyssenKrupp AG through active ownership from the fund. The Council on Ethics has recommended placing the company under observation due to unacceptable risk that the company contributes to or is responsible for gross corruption, ref. the conduct-based criteria in section 3 (1) (e) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. According to the guidelines, Norges Bank shall consider whether other measures, including active ownership, may be more suited to reduce the risk of continued norm violations, or whether such alternative measures may be more appropriate of other reasons. The Executive Board’s assessment is that active ownership is appropriate in this matter.

Anti-corruption is an ownership issue of priority for Norges Bank Investment Management, where we have presented public expectations. Further, Norges Bank has been in dialogue with the company over a long period of time. We therefore have a good foundation for active ownership on the issues to which this matter relates. Against this background, the Executive Board in Norges Bank has requested Norges Bank Investment Management to include the risk of corruption in special active ownership towards ThyssenKrupp AG over a period of three years.

The Executive Board has also chosen to revoke the exclusion of the company Atal SA/Poland. The company has been excluded since 2017 because of unacceptable risk that the company has contributed to serious violations of human rights through the use of North-Korean workers at construction sites in Poland. As a result of a resolution in the UN’s Security Council, all North-Korean workers have now been sent out of Poland. Therefore, there are no longer grounds for excluding the company.

The Council on Ethics' recommendations:

Kirin Holdings Ltd Co
ThyssenKrupp AG
Atal SA

Press contact:
Line Aaltvedt
Manager, Media and External Relations
Phone: +47 948 54 656
E-mail: [email protected]

See the total list of excluded companies