Decisions on observation and exclusion

Norges Bank has decided to place three companies under observation, end the observation of three companies, exclude one company and revoke the exclusion of one company.

7 March 2022

The Executive Board has decided to place the company Bombardier Inc under observation due to unacceptable risk that the company contributes to or is responsible for gross corruption, ref. the conduct-based criteria in section 4 (1) (g) of the Guidelines for Observation and Exclusion from the Government Pension Fund Global. The decision is based on a recommendation from the Council on Ethics of 22 October 2021.

The Executive Board has also decided to place the company Adani Ports & Special Economic Zone Ltd under observation due to unacceptable risk that the company contributes to or is responsible for serious violations of individuals’ rights in situations of war or conflict, ref. the conduct-based criteria in section 4 (1) (b) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. The decision is based on a recommendation from the Council on Ethics of 15 November 2021.

Furthermore, the Executive Board has decided to place the company Hyundai Glovis Co Ltd under observation due to unacceptable risk that the company contributes to gross or systematic human rights violations and serious environmental damage, ref. the conduct-based criteria in section 4 (1) (a) and (e) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. The decision is based on a recommendation from the Council on Ethics of 17 December 2021.

At the same time, the Executive Board has decided to end the observation of the companies Hansae Yes24 Holdings Co Ltd, Hansae Co Ltd and Nien Hsing Textile Co Ltd since the Council on Ethics’ investigations have shown that there are no longer grounds for observation. The decision is based on recommendations from the Council on Ethics of 25 November 2021 and 17 December 2021 respectively.

Furthermore, the Executive Board has decided to exclude the company Li Ning Co Ltd due to unacceptable risk that the company contributes to serious human rights violations, ref. the conduct-based criteria in section 3 (1) (a) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. The decision is based on a recommendation from the Council on Ethics of 30 September 2021.

The Executive Board has also decided to revoke the exclusion of the company San Leon Energy Plc. The company has been excluded since 2016 due to unacceptable risk that the company contributed to serious violation of fundamental ethical norms by engaging in petroleum prospecting in Western Sahara. Since the activities on which the exclusion was based have stopped, there are no longer grounds for excluding the company. The decision is based on a recommendation from the Council on Ethics of 22 October 2021.

The Executive Board has not conducted an independent assessment of all aspects of the recommendations but is satisfied that the exclusion criteria have been fulfilled. Before deciding to exclude a company, Norges Bank shall consider whether the use of other measures, including the exercise of ownership rights, may be better suited. The Executive Board concludes that it is not appropriate to use other measures in these cases.

The Council on Ethics’ recommendations:

Bombardier Inc
Adani Ports & Special Economic Zone Ltd
Hyundai Glovis Co Ltd
Hansae Yes24 Holdings Co Ltd and Hansae Co Ltd
Nien Hsing Textile Co Ltd
Li Ning Co Ltd
San Leon Energy Plc

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