Adani Ports Out of Norwegian Central Bank’s Pension Fund

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Synopsis:

Norway's Norges Bank excludes Adani Ports, Weichai Power, and L3Harris Technologies from its sovereign wealth fund due to ethical concerns. Adani Ports' alleged human rights violations lead to its exclusion, affecting foreign institutional investors and ethical investment trends.

Adani Ports News Today

Norway's central bank, Norges Bank, announced the exclusion of three companies including Adani Ports from its government pension fund due to ethical concerns. This decision follows recommendations from Norway’s Council on Ethics, advising the fund.

Additional Read: Adani Ports and Special Economic Zone Ltd. – Must Know Facts

Reason for Exclusion

Adani Ports and Special Economic Zone, based in India, faces exclusion due to concerns about contributing to serious human rights violations in conflict situations. The company has been on the central bank's watchlist since March 2022 due to its involvement in a Myanmar port terminal.

Adani Ports had sold its port-related operations in Myanmar to Solar Energy Ltd., but lack of information on the buyer raises concerns about continued ties to the division.

Impact on Adani Ports

The exclusion may lead to selling pressure on Adani Ports' stock in the near term, as foreign institutional investors reassess their positions. Long-term effects depend on the company's response and its ability to address the raised concerns over alleged rights violations.

Other Exclusions

Alongside Adani Ports, China's Weichai Power and L3Harris Technologies from the United States are also excluded from the investment by Norway's government pension fund.

Significance of the Norwegian Fund

Norway's Government Pension Fund Global (GPFG) is one of the world’s largest funds, owning nearly 1.5 per cent of all shares in listed companies globally. The fund considers environmental and social issues in its investments and may divest from companies posing substantial risks to society.

Sources:

https://www.livemint.com/market/stock-market-news/norway-excludes-adani-ports-from-govt-pension-fund-should-you-buy-sell-or-hold-the-stock-heres-what-experts-say-11715861649928.html

https://indianexpress.com/article/business/companies/norway-exclude-adani-ports-apsez-from-government-pension-fund-global-norges-bank-9332877/

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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