Norway wealth fund blacklists Adani ports, says company has ties to war

Norway’s $1.7 trillion sovereign wealth fund has removed Adani Ports & Special Economic Zone Ltd. from its portfolio, citing “unacceptable” risks that the company is tied to human rights violations in war and conflict zones. 

On Wednesday, Norges Bank Investment Management (NBIM) that manages the fund announced the decision in which it also excluded US-based L3Harris Technologies Inc., which develops components for nuclear weapons, and China’s Power Co., based on concerns that it is contributing to the sale of military equipment to Russia and Belarus. 

The decision follows recommendations late last year from Norway’s Council on Ethics, which advises the Oslo-based fund.

“In a situation in which extremely serious norm violations are taking place, this constitutes an unacceptable risk,” the Council on Ethics said.

Billionaire Gautam Adani’s logistics and transportation firm was “under observation” since 2022 by NBIM, originally due to its involvement in a port terminal in Myanmar. 

Despite, the company selling that port project last year, Norway’s Council on Ethics noted that “no information on the buyer is available,” which makes it impossible to ascertain whether Adani still has ties to the division.

Reportedly, at the end of 2023, NBIM owned a, 0.24% stake in Adani Ports and 0.13% of Weichai Power. Shares of Adani Ports climbed as much as 2.2% in early trading in Mumbai.