Following recommendations from the Council of Ethics the Ministry of Finance excluded the following companies from the Government Pension Fund Global’s investment universe, due to an assessment of the risk of severe environmental damage:
- WTK Holdings Berhad
- Ta Ann Holdings Berhad
- Zijin Mining Group
- Volcan Compañia Minera
Furthermore the Ministry of Finance excluded Zuari Agro Chemicals Ltd., based on an assessment of the risk of contributing to the worst forms of child labour.
According to the Ministry’s statement, the decision to exclude the aforementioned companies was made on basis of the recommendations from the Council on Ethics. The Ministry stated that it was satisfied that all of the Council of Etchics’ recommendations establish with reasonable certainty that investments in these companies represent an unacceptable risk of violating the Guidelines for observation and exclusion.
The Ministry of Finance also requested Norges Bank to include oil spills and the environmental conditions in the Niger Delta in its ownership efforts for a period of between five and ten years. Thus, the Ministry did not follow the recommendations from the Council on Ethics to place Royal Dutch Shell plc. and Eni Sp.A‘s operations in the Niger Delta under observation. The Ministry of Finance however considers enhancing the active ownership efforts aimed at the mining sector, particularlty with respect to the mining related environmental damage with the company AngloGold Ashanti.