The Council on Ethics recommended on June 29, 2017, that Precious Shipping PCL be excluded from investment by the Government Pension Fund Global (GPFG). Precious Shipping PCL is a Thai company that primarily owns and operates bulk cargo vessels.
The Council rests its assessment on the fact that Precious Shipping PCL has for several years disposed of decommissioned vessels by sending them to be broken up for scrap on the beaches of Bangladesh and Pakistan, a practice known as beaching, where working conditions are extremely poor. The process also causes severe environmental damage. The Council considers that by disposing of ships for scrapping in this way, the company can be said to contribute to serious human rights violations and severe environmental damage. There are no indications that the company will cease disposing of ships by means of beaching.
The Council will re-examine the grounds for exclusion if at the end of four years the company has not sent any ships for beaching, or before that time if the company gives notice that it has ceased this practice.
Norges Bank made public its decision to exclude the company on January 16, 2018.
Please find the Council’s recommendation here.