Decisions on exclusion and special ownership dialogue
Norges Bank has decided to exclude one company from the Government Pension Fund Global and to end special ownership dialogues with two companies.
15 January 2025
Norges Bank Executive Board has decided to exclude the company RLX Technology Inc due to its production of tobacco or tobacco products, ref. the product-based criterion in section 3 (b) of the Guidelines for Observation and Exclusion from the Government Pension Fund Global.
The decision is based on a recommendation from the Council on Ethics of 26 June 2024.
The Executive Board has not conducted an independent assessment of all aspects of the recommendation but is satisfied that the exclusion criterion has been fulfilled. Before deciding to exclude a company, Norges Bank shall consider whether the use of other measures, including the exercise of ownership rights, may be better suited. The Executive Board concludes that it is not appropriate to use other measures in this case.
The Board has further decided to end special ownership dialogues with the company Eni SpA. In March 2012, the Council on Ethics recommended to place Eni under observation due to concerns about oil spills linked to their activities in the Niger Delta. The Ministry of Finance asked NBIM to engage with the company as part of its ownership dialogue.
For the past decade, NBIM has maintained regular dialogue with the company, monitoring oil spill prevention efforts and remediation measures. Eni has shared detailed statistics and demonstrated transparency about challenges in the region, including oil theft and sabotage. In September 2023, Eni announced plans to exit Niger Delta onshore operations, and has now completed the sale of its subsidiary NAOC to Oando PLC. Given these developments, the Board finds that the forward-looking risk of the company contributing to or being responsible for severe environmental damage is no longer unacceptable within the meaning of the ethical guidelines.
Finally, the Board has decided to end special ownership dialogues with the company ThyssenKrupp AG. In December 2020, the Council on Ethics recommended observation of ThyssenKrupp based on concerns about corruption risks involving bribes and suspicious transactions across eight countries over 20 years. Rather than placing the company under observation, in March 2021, the Board asked NBIM to follow-up through ownership dialogue over a three-year period.
During this time, NBIM has engaged in detailed discussions with ThyssenKrupp's management, compliance team, and supervisory board. The company has been responsive and open throughout the period of ownership, which has allowed a better understanding of how their anti-corruption efforts have evolved, the concrete steps they have taken to reduce corruption risk, and their plans for further improvements. Although the company’s industry and geographic operations leave it exposed to corruption risk, the Board finds that the forward-looking risk of the company contributing to or being responsible for gross corruption is no longer unacceptable within the meaning of the ethical guidelines.
NBIM will continue to engage with both Eni and Thyssenkrupp, and will follow up on these cases as relevant, through regular ownership dialogue.
