Decision to place companies in the portfolio of the Government Pension Fund Global under observation
29 June 2017
The companies are placed under observation because of an unacceptable risk that the companies contribute to, or are responsible for, systematic violations of human rights (see Section 3, subsection a) of the Guidelines for observation and exclusion from the Government Pension Fund Global). The Council on Ethics has recommended that Hansae Yes24 Holdings Co Ltd and Hansae Co Ltd be excluded from the fund’s investment universe. At the same time, the Council on Ethics highlights that the companies have taken measures to improve the working conditions. The Executive Board believes that these measures provide sufficient grounds to observe the development in the future. The Executive Board finds that there is sufficient basis to conclude that the criteria for observation have been satisfied. The Guidelines' section 6(4) says that «Observation may be decided when there is doubt as to whether the conditions for exclusion are met or as to future developments, or where observation is deemed appropriate for other reasons».
Norges Bank has asked the Council on Ethics to observe the development in the companies.
Recommendation by the Council on Ethics
List of excluded companies and companies under observation
Contact
Runar Malkenes,
Director of Communications, Norges Bank
Phone: +47 952 14 283