The Norwegian wealth fund put Bombardier, Adani Ports on its watch list | Whuff News


March 8 (Reuters) – Norway’s sovereign wealth fund has put Canada’s Bombardier, India’s Adani Ports ( APSE.NS ) and South Korea’s Hyundai Glovis ( 086280.KS ) on its watch list for possible exclusion from investments due to ethical concerns.

Norway’s $1.3 trillion wealth fund, which invests the state’s revenue from oil and gas production for future generations, follows an ethical mandate set by parliament.

Norges Bank, which manages the fund, said in a statement on Monday that Bombardier was placed on the list because of “an unacceptable risk that the company contributes to or is responsible for serious corruption”. The fund has a 1.2% stake in the Canadian company, according to Refinitiv data.

An investigation into the business jet maker has revealed the company or its subsidiaries could be linked to allegations or suspicions of corruption in six countries over a period of more than ten years, the fund’s ethics council said.

All the cases related to bribery or suspicious transactions totaling more than $100 million to win contracts for Bombardier subsidiaries, he said. But it noted that Bombardier is divesting its transport division, to which the majority of corruption allegations have been linked, in 2021.

Bombardier did not immediately respond to a Reuters request for comment outside normal business hours.

Adani Ports ( APSE.NS ) may have contributed to “serious violations” of human rights because of its involvement in building port terminals in military-ruled Myanmar, the fund said. The fund has a 0.7% stake in the company, according to Refinitiv.

Last year, Adani Ports said it had abandoned plans to build a container terminal in Myanmar, and expected to fully exit the investment by June. The fund, however, said there was significant uncertainty about when such withdrawals could be implemented. read again

“Like our global partners, we are watching the situation in Myanmar closely and will be in touch with relevant authorities and stakeholders to seek their advice on the way forward,” Adani said in a statement on Tuesday.

Hyundai Glovis (086280.KS), a unit of Hyundai Motor Group, has disposed of scrapped ships by sending them to be broken up for scrap on the coasts of Pakistan and Bangladesh, where working conditions are extremely poor and this contributes to human rights violations, the fund said. said.

The practice, known as beaching, also causes severe environmental damage.

Hyundai Glovis, of which the fund owns 0.81% according to Refinitiv, did not immediately respond to a request for comment.

The fund also said it had excluded from investment Chinese sportswear maker Li Ning ( 2331.HK ) because of an “unacceptable risk” that the company contributed to serious human rights violations in China’s Xinjiang.

The company, which has endorsement deals with several US NBA players, did not immediately respond to an email seeking comment.

Reporting by Sayantani Ghosh in Singapore and Nora Buli in Oslo, Additional reporting by Maria Ponnezhath in Bengaluru and Mayank Bhardwaj in New Delhi, Heekyong Yang in Seoul, and Sophie Yu in Beijing; Editing by Edwina Gibbs

Our Standards: Thomson Reuters Trust Principles.



Source link