Norges Bank revokes exclusion of electricity generator Drax Group Plc

Norges Bank has revoked the exclusion of electricity power generator, Drax Group Plc, from the Government Pension Fund Global (GPFG).

The decision was made by the executive board based on a recommendation from Norges Bank Investment Management (NBIM).

Drax Group Plc was excluded in 2016 after an assessment of the product-based coal criterion. At that time, it was estimated that the company had coal power capacity in excess of 30 per cent of total power capacity.

Since then, the company has undergone significant restructuring, with a transition from coal to biomass as fuel, Norges Bank stated.

“Our estimates now indicate that the company's coal power capacity is less than 30 percent of the total power capacity by a good margin, and thus that the company bases less than 30 percent of its operations on coal,” it said.

Norges Bank regularly reviews companies and currently has over 150 companies on its exclusion list. Most recently it excluded G4S due to human rights issues.

Before deciding to exclude a company, Norges Bank considers whether the use of other measures, including the exercise of ownership rights, may be better suited.

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