Norway sovereign wealth fund excludes Korea Gas, India’s GAIL over Myanmar link
5:25 pm Thursday, April 27th, 2023
(Reuters) – The Norwegian central bank on Thursday excluded two oil and gas companies from its $1.4-trillion wealth fund, the world’s largest, citing ethical concerns over their ties to the Myanmar military.
South Korea’s state-run Korea Gas Corp (KOGAS) and Indian gas firm GAIL (India) Ltd were excluded from the fund, Norges Bank said in a statement.
The two were excluded due to “unacceptable risk that (the) companies contribute to serious violations of individuals’ rights in situations of war or conflict,” the fund said.
“The background is the companies’ business collaboration with an organization affiliated with the military in Myanmar,” Norges Bank Investment Management (NBIM) said.
GAIL did not respond to a Reuters request for comment after market hours. Korea Gas Corp could not be immediately reached.
Norway’s wealth fund operates under ethical guidelines set by parliament and excludes investments in companies that it says does not respect the guidelines.
At the end of last year, the fund held $5.5 million worth of shares in KOGAS, representing 0.21% of the outstanding shares, according to the fund’s filings.
Norges Bank held $70.2 million in GAIL shares as of the same date, representing 0.92% of total shares in the company.
The Norwegian sovereign fund, formally called the Government Pension Fund Global and set up in 1996 to save petroleum revenues for future generations, owns about 1.5% of all globally listed shares.
Norges Bank holds stakes in more than 9,200 companies globally through the wealth fund.
(Reporting by Mrinmay Dey in Bengaluru and Victoria Klesty in Oslo)
