The Norwegian central bank found GAIL’s ties to the Myanmar Military to be problematic
Indian gas firm GAIL (India) Ltd., along with South Korea's state-run Korea Gas Corp (KOGAS), have been excluded by the Norwegian central bank from its $1.4-trillion wealth fund.
The world's largest wealth fund has cited ethical concerns over their ties to the Myanmar military.
The two were excluded due to "unacceptable risk that (the) companies contribute to serious violations of individuals’ rights in situations of war or conflict," the fund said.
"The background is the companies' business collaboration with an organization affiliated with the military in Myanmar," Norges Bank Investment Management (NBIM) said.
The wealth fund of Norway operates in accordance with moral standards established by the parliament and refrains from investing in businesses that it claims violates the standards. The decision is based on a recommendation from the Council on Ethics of 29 November 2022.
According to the fund's reports, at the end of the previous year, it owned shares of KOGAS worth $5.5 million, or 0.21% of all shares outstanding.
As of the same day, Norges Bank owned shares of GAIL worth $70.2 million, or 0.92% of the total number of shares in the business.
About 1.5% of all shares listed on worldwide exchanges are owned by the Norwegian sovereign fund, formally known as the Government Pension Fund worldwide and established in 1996 to safeguard petroleum profits for future generations.