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Additional coal exclusions from the Government Pension Fund Global

21 December 2016

Norges Bank has decided to exclude 15 companies from the Government Pension Fund Global based on the product-based coal criterion in the guidelines for observation and exclusion.

The exclusions follow Norges Bank Investment Management’s second round of analysis of companies that may be affected by this criterion. The implementation comprises all companies’ subsidiaries that issue bonds. This is an expansion since the first round of analysis. The exception is green bonds, or subsidiaries that are deemed to have significant renewable energy activity.

In accordance with the guidelines, companies may be placed under observation where there is doubt as to whether the conditions for exclusion have been met, or as to future developments, or where observation is deemed appropriate for other reasons. Norges Bank has for this reason decided to place an additional 11 companies under observation.

In total, Norges Bank has so far excluded 59 companies and placed 11 companies under observation on the product-based coal criterion. Further exclusions will follow in 2017.

In accordance with the updated implementation of the criterion, the second round of analysis comprises another 30 subsidiaries that issue bonds. 21 of these are subsidiaries of companies excluded in the first round of analysis in April 2016 when 44 companies and 8 subsidiaries that issue bonds were excluded. In total, 38 subsidiaries that issue bonds have been excluded.

Norges Bank’s Executive Board made the observation and exclusion decisions based on recommendations from Norges Bank Investment Management. The Executive Board has found that the recommendations satisfy the criteria, and that the companies can be placed under observation or excluded from the fund (see § 2, subsection 2, of the Guidelines for observation and exclusion from the Government Pension Fund Global).

Read the grounds for decision on product based coal exclusion (PDF)

Companies excluded

Name

Country

Alliant Energy Corp

USA

Chugoku Electric Power Co Inc/The

Japan

DMCI Holdings Inc

Philippines

Electric Power Development Co Ltd

Japan

Electricity Generating PCL

Thailand

Emera Inc

Canada

Empire District Electric Co

USA

Great Plains Energy Inc

USA

Guangdong Electric Power Development Co Ltd

China

Hokuriku Electric Power Co

Japan

Inner Mongolia Yitai Coal Co Ltd

China

Jastrzebska Spolka Weglowa SA

Poland

NRG Energy Inc

USA

Tenaga Nasional Bhd

Malaysia

Westar Energy Inc

USA

Companies put on observation

Name

Country

CMS Energy Corp

USA

EDP Energias de Portugal SA

Portugal

Endesa SA

Spain

Glow Energy PCL

Thailand

Kyushu Electric Power Co Inc

Japan

OGE Energy Corp

USA

Pinnacle West Capital Corp

USA

SCANA CORP

USA

Southern Co/The

USA

Talen Energy Corp

USA

Tohoku Electric Power Co Inc

Japan

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