Adani Ports & Special Economic Zone Ltd. has been barred from the portfolio of Norway's USD1.7 trillion sovereign wealth fund due to the 'unacceptable' risks of the company's involvement in human rights violations in war and conflict zones.
The transportation and logistics company of billionaire Gautam Adani has been "under observation" by NBIM since 2022, initially because of its involvement in a port terminal in Myanmar.
The sovereign wealth fund's manager, Norges Bank, announced in a statement that it has chosen to keep out China's Weichai Power, India's Adani Ports and Special Economic Zone, and L3Harris Technologies.
Weichai Power, a manufacturer of transportation equipment, is likewise being barred from the fund due to worries that the Chinese business supports the transfer of weapons to nations engaged in hostilities, where "weapons are used in ways that constitute breaches of the international rules," according to the bank.
According to the bank, L3Harris, a U.S. defense contractor, is also not eligible for the fund since it develops and produces parts for nuclear weapons.
The executive board of Norway's central bank decided on Wednesday to remove three companies from the government pension fund due to ethical concerns.
Norway's Sovereign Fund
In order to manage Norway's oil wealth and provide long-term savings for present and future generations, the Government Pension Fund Global was founded.
The fund was established in 1969 in response to the discovery of oil in the North Sea, with the goal of managing oil revenues responsibly and preventing economic imbalances.
The fund was established by legislation passed in 1990, and the first deposits were made in 1996. Among the biggest sovereign wealth funds globally.
It makes only foreign investments to protect the future of the Norwegian economy. The fund owns nearly 1.5% of all shares in globally listed companies, with holdings in about 9,000 different companies.
