Norway wealth fund drops Bhel over environment concerns

The ethics watchdog had recommended the fund exclude the companies

Norway’s $940-billion sovereign wealth fund excluded Bharat Heavy Electricals, placed PetroChina Co and Leonardo SpA under observation and said it will follow up with Eni SpA and Saipem SpA on the risks of corruption.

Bharat Heavy was excluded from the fund “based on an assessment of the risk of severe environmental damage” after a recommendation from the Council on Ethics, the central bank, which oversees the fund, said in a statement. PetroChina and Leonardo were placed under observation, a preliminary step before a potential exclusion, based on an “unacceptable risk that the companies contribute to, or are responsible for, severe corruption,”