"Decisions on observation and exclusion: Information about the ownership dialogue with PetroChina Co Ltd"

On 28 February 2020, the Council on Ethics recommended that Norges Bank exclude PetroChina Co Ltd from the fund due to unacceptable risk that the company contributes to, or is responsible for, gross corruption (cf. the conduct-based criterion in the Guidelines for Observation and Exclusion from the Government Pension Fund Global)...The Executive Board of Norges Bank decided in August 2020 that the matter should instead be taken up with the company through active ownership over a period of three years.

...in light of concrete actions taken by the company, the Executive Board finds that the risk of future norm violations appears to be sufficiently reduced. It has therefore decided to conclude the Bank’s special ownership dialogue with the company under the Guidelines on Observation and Exclusion.

The aim of the dialogue with PetroChina was for the company to demonstrate sufficient improvements to its anti-corruption programme considering the company’s risk exposure. "Our engagement indicates that the company has strengthened its due diligence and monitoring processes"...

Since the companies’ industry and operations are still considered to be at a relatively high risk of corruption, Norges Bank Investment Management plans to continue to engage with the company as part of its regular ownership activities.