Norway’s Norges Bank has excluded two companies from the Government Pension Fund Global (GPFG) following a recommendation from the Council on Ethics.

Its Executive Board decided to exclude GAIL India and Korea Gas Corporation due to “unacceptable risk” that the companies contribute to “serious violations” of individuals’ rights in situations of war or conflict.

It referenced the conduct-based criteria in section 4(b) of the Guidelines for the Observation and Exclusion of Companies from the GPFG in relation to the decision.

Norges Bank said that the background to not meeting its guidelines was the companies’ business collaboration with an organisation affiliated with the military in Myanmar.

Norges Bank, whose investment management arm NBIM is responsible for the investments of the GPFG, noted that the Executive Board had not conducted an independent assessment of all aspects of the recommendations.

However, it was satisfied that the observation and exclusion criteria had been fulfilled.

“Before deciding to exclude a company, Norges Bank shall consider whether the use of other measures, including the exercise of ownership rights, may be better suited,” it stated.

“The Executive Board concludes that it is not appropriate to use other measures in these cases.”

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