Norway GPFG Banned from Investing in Korea Gas Corp and GAIL India over Myanmar
Posted on 05/08/2023
On April 27, 2023, Norges Bank decided to exclude two companies from Norway Government Pension Fund Global.
According to the press release, “The Executive Board has decided to exclude the companies GAIL India Ltd and Korea Gas Corporation due to unacceptable risk that the companies contribute to serious violations of individuals’ rights in situations of war or conflict, ref. the conduct-based criteria in section 4 (b) of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global. The background is the companies’ business collaboration with an organization affiliated with the military in Myanmar. The decision is based on a recommendation from the Council on Ethics of 29 November 2022.
The Executive Board has not conducted an independent assessment of all aspects of the recommendations but is satisfied that the observation and exclusion criteria have 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. The Executive Board concludes that it is not appropriate to use other measures in these cases.”
The Council on Ethics recommended that the Korean gas company Korea Gas Corporation (KOGAS) be excluded from investment by the Norwegian Government Pension Fund Global (GPFG) due to an unacceptable risk that they believe the company is contributing to serious violation of the rights of individuals in situations of war and conflict. The recommendation relates to the company’s activities in Myanmar.
Myanmar
KOGAS is partnering with the state-owned oil company Myanma Oil and Gas Enterprise (MOGE) in the Shwe gas field offshore Myanmar. In February 2021, the armed forces in Myanmar staged a coup d’état, after which the military has intensified its extremely serious abuses of civilians. Through its activities in the country, KOGAS provides the armed forces with substantial revenue streams that can finance military operations and abuses. The Council on Ethics issued its recommendation on exclusion on November 29, 2022. Norge Bank announced its decision to exclude the company on April 26, 2023.
The Council on Ethics also recommended that the Indian gas company GAIL (India) Ltd (GAIL) be excluded from investment by the Norwegian Government Pension Fund Global (GPFG) due to a similar reason. GAIL is partnering with the state-owned oil company Myanma Oil and Gas Enterprise (MOGE) in the Shwe gas field offshore Myanmar.
