- Sep 4, 2021 4:01 pm GMT
The world's largest sovereign wealth fund, Norway's $1.4 trillion Government Pension Fund Global (GPFG), is excluding India state firm Oil and Natural Gas Corporation Limited (ONGC) from its portfolio due to the company's ties to groups that seriously violate human rights in South Sudan. Norway is one of Europe's richest countries ES BANK IS SAYING?with decades of oil revenues amassed in the world's largest sovereign wealth fund with $1.4 trillion in assets and holdings of 1.4 percent of all of the world's listed companies, including stakes in oil majors Exxon, Chevron, Shell, and BP.
WHY HAS IT HAPPENED?
- The Council on Ethics has recommended to Norges Bank to exclude ONGC "due to an unacceptable risk that the company is contributing to serious violations of the rights of individuals in situations of war or conflict."
- "Control of the petroleum resources in the country has been a key driver in the conflict. In this context, ONGC participates in two joint ventures with, among others, the South Sudan's state oil company Nilepet," the Council on Ethics says.
- ONGC states that no incidents of human rights abuses have been reported within the joint ventures' areas of operation, and that there are no links between assaults on the civilian population and the company's operations."
Sovereign wealth funds and investment fund are putting increasing pressure on oil & gas companies to improve their ESG performance. The pressure in Europe where ESG performance is far advanced is especially high. The funds and investors continuously review the companies in which the sovereign wealth fund is invested and excludes companies violating human rights, and most recently, engaging in coal mining.
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