Norway wealth fund puts Adani Ports, other companies on watch list

Norway's $1.3 trillion wealth fund on Monday put billionaire Gautam Adani-led Adani Ports under observation, for possible exclusion from its investments, for its involvement in building a port terminal in military-ruled Myanmar, it said in a statement.

Norges Bank has put Adani Ports under observation on 'unacceptable risk that co contributes to or is responsible for violations of individuals’ rights in situations of war or conflict.'

"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," it stated.

The fund had also put several other companies under observation.

The other companies in the exclusion list comprises Hyundai Glovis Co Ltd, a logistics company headquartered in Seoul, South Korea and part of the Hyundai Kia Automotive Group; Hansae Yes24 Holdings Co Ltd, Hansae Co Ltd and Nien Hsing Textile Co Ltd.

Norway's sovereign fund, which invests the state's revenues from oil and gas production for future generations, follows an ethical mandate set by the country's parliament.

Shares of Adani Ports & Special Economic Zone Ltd closed 3.2 per cent lower at Rs 677.15 apiece on Monday on BSE.