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The Executive Board of Norges Bank excludes the two Israeli companies Shapir Engineering and Industry Ltd and Mivne Real Estate KD Ltd due to the risk that the companies contribute to systematic violations of human rights in war and conflict. It appears in a message from Norges Bank on Wednesday night.
This is happening right in the middle of the escalation of the conflict between Israel and Hamas. The Council on Ethics has recommended evicting the companies due to activities associated with Israeli settlements in the West Bank.
The companies build homes and rent out industrial premises connected to Israeli settlements in the West Bank.
The council writes that they “assume that the Israeli settlements in the West Bank were built in violation of international law, and their existence and constant expansions inflict significant damage and inconvenience on the Palestinian population in the area”.
At the end of 2019, the Petroleum Fund owned shares worth NOK 103.6 million in Mivne, corresponding to an ownership interest of 0.53 per cent, and NOK 19 million in Shapir, corresponding to an ownership interest of 0.1 per cent.
Throws out company with factories in Myanmar
In addition, Norges Bank also excludes the Japanese company Honeys Holdings Co Ltd from the Petroleum Fund due to “unacceptable risk that the company contributes to systematic violations of human rights”.
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This is done on the recommendation of Norges Bank’s Ethics Council, which believes that the company should be excluded from the Petroleum Fund after assessing the employees’ rights at two factories that the company owns in Myanmar.
Honeys is a Japanese company that designs, manufactures and markets clothing and accessories for women through its own brands in Japan and China, and is also a supplier to other major retailers in Japan. The company owns two garment factories in Myanmar.
According to the Council on Ethics, investigations into working conditions at these factories have revealed many violations of workers’ rights, and include harassment of employees, serious violations of regulations on fire safety and working environment, underage labor, extensive and illegal use of day contracts and the company actively restricting freedom of association.
The Executive Board writes in the report that they have not independently assessed all the details of the recommendations, but finds it sufficiently proven that the criteria for exclusion have been met.
«Before exclusion, the bank must assess whether other instruments, including the exercise of ownership, may be better suited. The Executive Board’s assessment is that it is not appropriate to use other instruments in these cases ».(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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