Norway’s sovereign wealth fund on Wednesday announced that it would exclude Adani Ports and Special Economic Zone Limited from its investment portfolio in view of the “unacceptable risk” posed by the company’s alleged links to human rights violations in war and conflict zones.

This means that the Norwegian fund will no longer invest in the company.

In a statement, Norges Bank Investment Management, which manages the country’s Government Pension Fund Global, said its decision to exclude Adani Ports was based on a recommendation of its Council on Ethics on November 21. Norges Bank Investment Management is part of the Norges Bank, the country’s central bank.

The Council on Ethics advises on whether investments are consistent with the wealth fund’s ethical guidelines.

On Adani Ports, the council said the company had been under observation since March 2022 due to its “business association with the armed forces in Myanmar”.

“In May 2023, APSEZ [Adani Ports and Special Economic Zone Limited] disclosed that it had sold its port-related operations in Myanmar to Solar Energy Ltd,” read the statement. “No information on the buyer is available, and APSEZ has stated that it cannot share any such information on the grounds of confidentiality.”

The Adani Ports and Special Economic Zone Limited is a part of the Adani Group and is a logistics company that engages in the operation of ports and port services, among other things.

According to the statement, the council was unable to establish whether Adani Ports has links to the concerned enterprise because of a “lack of information”.

“In a situation in which extremely serious norm violations are taking place, this constitutes an unacceptable risk that the GPFG’s [Government Pension Fund Global] investments in APSEZ may breach its ethical guidelines,” it said.

The militia in Myanmar has been fighting the military junta that came back to power following a coup in February 2021.

According to the United Nations, the conflict has displaced more than 2.6 million people by the end of 2023. As the conflict intensified more recently, it has resulted in the displacement of an estimated 335,000 more.

On Wednesday, the central bank also stated that it had decided to exclude the United States-based L3Harris Technologies Inc., from its sovereign wealth fund as it develops components for nuclear weapons, and China’s Weichai Power Co., due to concerns that it “contributes to sales of weapons to states in armed conflicts”.