...As part of our ongoing human rights due diligence of the portfolio, we review the portfolio with the aim to identify companies that could have a significant adverse impact on people, and to prioritise action to reduce the risk from owning such companies. This includes companies with operations or business relationships in conflict-affected areas.

We also have regular dialogue with investee companies to understand whether those that are exposed to risks have adequate policies and processes in place for preventing or mitigating potential and actual negative impacts. In 2021, we expanded our dialogue with companies with operations or business relationships in conflict-affected areas where we seek to better understand their risk exposure and management practices, and we use our leverage as an investor to encourage the companies to conduct enhanced due diligence.

Further, the independent Council on Ethics is charged with making recommendations to Norges Bank on the observation and exclusion of companies in the fund’s portfolio in accordance with criteria in the Guidelines for observation and exclusion of companies from the fund...