Norway’s Norges Bank has decided to revoke the exclusion of Mativ Holdings from the Government Pension Fund Global (GPFG).

Mativ Holdings, formerly known as Schweitzer-Mauduit International, was excluded in 2013 for production of tobacco.

Norges Bank’s Executive Board chose to revoke its exclusion following a recommendation from the Council on Ethics, as the company is no longer involved in such production.

The Executive Board also decided to continue to observation of Bombardier.

The company was placed under observation in March 2022 for a period of two years due to the “unacceptable risk that the company is contributing to or is itself responsible for gross corruption”.

The Council on Ethics considered that the risk attaching to firm’s efforts to prevent, detect and deal with corruption is still “not acceptable” and recommended that observation of the company be extended.

Furthermore, the Executive Board has decided to ask Norges Bank Investment Management (NBIM) to follow up the companies Bolloré SE and Compagnie de l'Odet SE through the exercise of ownership rights.

The Council on Ethics recommended that the companies should be excluded due to the “unacceptable risk that the companies contribute to or are responsible for serious human rights violations”.

This is based on the conduct-based criterion in section 4(a) of the Guidelines for Observation and Exclusion from the GPFG.

“The basis for the recommendation is poor working conditions, gender-based violence and harassment on palm oil plantations in Cameroon, and consequences for the local community,” NBIM stated.

“The norm violations are related to the activities of the company Société Financière des Cautchoucs (Socfin), which has close links with Compagnie de l'Odet SE and Bolloré SE, and in which Bolloré SE is a significant shareholder.

“The Council on Ethics' assessment is that the companies are thereby contributing to Socfin's norm violations.”

According to guidelines, Norges Bank assessed whether other measures, such as the exercise of ownership rights, may be better suited to reduce the forward-looking risk of norm violations or may be more appropriate for “other reasons”.

The Executive Board concluded that active ownership in this case could be an appropriate measure.

“Human rights are a priority ownership topic for NBIM, where the fund has clear, public expectations that companies should conduct due diligence assessments and prevent and manage human rights risks in their value chain,” NBIM stated.

“This means that companies should have policies in place to respect human rights in their own operations, in supply chains and in other business relationships, as well as adequate systems for detecting, preventing and managing human rights risks.”

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