The Council on Ethics recommends that the company Formosa Chemicals & Fibre Corp and its subsidiary Formosa Taffeta Co Ltd be excluded from investment by the fund due to an unacceptable risk that the companies cause systematic human rights abuses.
Among other things, Formosa Taffeta produces woven fabrics at production facilities in Taiwan, China and Vietnam. Investigations into working conditions at Formosa Taffeta’s factory in Vietnam identified numerous labour rights violations such as the illegal and involuntary use of overtime, underpayment of employees, discrimination, and violations of occupational health and safety requirements. The Council on Ethics emphasises that Formosa Taffeta has provided misleading information about working hours to the Council, and that it in practice does little to prevent the abuse of labour rights within its own operations.
The Council on Ethics submitted its recommendation 23 May 2019. Norges Bank published its decision to exclude the companies on 31 August 2020.