Decisions on observation

Norges Bank’s Executive Board has decided to end the observation of Kirin Holdings Co Ltd. The company was placed under observation in March 2021 due to unacceptable risk that the company contributes to serious violations of individuals’ rights in situations of war or conflict. The background was Kirin’s business relationship with an organisation with ties to the military in Myanmar. Kirin has ended the business relationship and no longer has any activity in Myanmar. Hence, it is the Council on Ethics’ assessment that there are no longer grounds for having the company under observation. The decision is based on a recommendation from the Council on Ethics of 2 February 2023.

The Executive Board has also decided to extend the observation of the company Pan Ocean Co Ltd, which after a recommendation from the Council on Ethics has been under observation since January 2018. The background for the decision to observe the company was that the company has disposed of obsolete vessels by sending them to be broken up for scrap on the beaches of Bangladesh and Pakistan, where working conditions are extremely poor. The company has recently adopted a new policy aimed at securing that obsolete vessels are disposed of in a more sustainable way. The Council on Ethics has recommended to extend the observation period with four years to assess the practical implementation of the new policy. The decision is based on a recommendation from the Council on Ethics of 20 December 2022.

The Executive Board has not conducted an independent assessment of all aspects of the recommendation but is satisfied that the observation and exclusion criteria have been fulfilled.

The Council on Ethics’ recommendations:

Kirin Holdings Co Ltd
Pan Ocean Co Ltd

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