Norges Bank has decided to exclude two companies from future investments due to unacceptable risk of human rights violations and product-based coal criterion.

The NOK 8.4trn (€861bn) Government Pension Fund Global has excluded investment holding company Texwinca Holdings Co, electric utility company Evergy Inc and investment holding company Washington H. Soul Pattinson & Co Ltd.

Texwinca, a Hong Kong based company engaged in knitted fabric and apparel businesses, has been excluded by the executive board due to “unacceptable risk that the company is responsible for serious or systematic violations of human rights,” the fund said.

The decision to exclude the company was made based on a recommendation from the Council of Ethics which was made on 6 June 2018. Texwinca is the majority shareholder of Megawell Industrial Ltd and the recommendation is based on investigations into working conditions, which uncovered systematic norm violations at Megawell’s factories in Vietnam.

The violations include discrimination against women, numerous occupational health and safety hazards and restrictions on freedom of association.

Texwinca has stated that it does not have a controlling influence over Megawell, and that it has no responsibility for the working conditions at the factories in Vietnam. The pension fund board did not conduct an independent assessment of all aspects but is however satisfied that the criteria have been fulfilled, Norges Bank said.

Evergy supplies electricity in Kansas and Missouri, while Washington H. Soul Pattinson owns shares in several coal mining companies. Both have been excluded by the executive board based on an assessment of the product-based coal criterion.

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

“The executive board concludes that it is not appropriate to use other measures in these cases,” Norges bank said.

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