Norges Bank


Government Pension Fund Global: Exclusion and observation decisions

Norges Bank has decided to exclude seven companies from the Government Pension Fund Global and revoke two exclusions.

Norges Bank’s Executive Board has decided to exclude the companies Canadian Natural Resources Limited, Cenovus Energy Inc, Suncor Energy Inc, and Imperial Oil Limited after an assessment that acts or omissions that on an aggregate company level lead to unacceptable greenhouse gas emissions, ref. section 3, subsection d, of the Guidelines for Observation and Exclusion of Companies from the Government Pension Fund Global. The Council on Ethics recommended to exclude the companies because of carbon emissions from production of oil to oil sands. It is the first time this criterion is being applied.

In addition, the companies ElSewedy Electric Co and Vale SA are excluded after an assessment of the risk of contribution to severe environmental damage, ref. section 3, subsection c, of the guidelines. It was recommended that ElSewedy Electric Co be excluded because of its participation in the development of a hydropower project in Tanzania. It was recommended that Vale be excluded as a result of repeated dam breach.

The Executive Board has also decided to exclude the company Centrais Eletricas Brasileiras SA (Eletrobras) because of unacceptable risk that the company contributes to serious or systematic human rights violations, ref. section 3, subsection a, of the guidelines. It was recommended that the company be excluded because of human rights violations in connection with the development of the powerplant Belo Monte in Brazil.

The Executive Board’s exclusion decisions were made based on recommendations from the Council on Ethics. For several of the companies of which exclusion is now being made public, the market situation, including liquidity in individual shares, has meant that it has taken a long time to sell the shares in a reasonable manner. That explains why a long period of time has passed between some of the decisions and the bank’s publication.

Decisions to revoke exclusion

Norges Bank has decided to revoke the exclusion of AECOM and Texwinca Holdings Ltd.

The Executive Board’s decision to revoke the exclusion of the companies was made based on recommendations from the Council on Ethics, which shall regularly assess whether the basis for observation or exclusion still exists, ref. section 5, subsection 5, of the guidelines.

AECOM Ltd was excluded in 2018 on the basis of production of nuclear weapons. These activities have now been discontinued. Against this background, the Council on Ethics has recommended that there is no longer a basis for excluding the company. Texwinca Holdings Ltd was excluded in 2019 because of systematic breach of workers’ rights in factories owned by a subsidiary. The Council of Ethics has been informed that the subsidiary is liquidated. Based on this information, the Council on Ethics has recommended that the exclusion be revoked.

Norges Bank’s Executive Board has not independently assessed all aspects in the recommendations, but finds it adequately substantiated that the criteria for exclusion and observation have been fulfilled under the guidelines.

List of all excluded companies

Press contact:

Marthe Skaar
Head of Communications and External Relations (acting), Norges Bank Investment Management
Tel. no.: +47 92617663


Published 13 May 2020 00:01