Norway’s $1.2 trillion sovereign wealth fund, the world’s largest, has decided to exclude Adani Green Energy Ltd (AGEL) from its portfolio due to concern about its alleged links to financial crime.
Norges Bank, which had in May 2024 excluded Adani Ports and Special Economic Zone Ltd, on its website added AGEL to the list of companies that it has decided to exclude from its portfolio. It cited “gross corruption or other serious financial crime” as the criterion for its decision but gave no explanation.
When Norges Bank first bought AGEL shares in July 2020, the share price was ₹341. Today it is ₹944.
While AGEL did not immediately offer any comments, industry officials said a fossil fuel funded sovereign fund is trying to create a narrative against a renewable company.
Norges Bank Investment Management, the entity managing the Norwegian sovereign wealth fund, had previously excluded Indian blue chip firms like Oil and Natural Gas Corporation (ONGC), Coal India, Bharat Electronics Ltd, BHEL, GAIL India Ltd, ITC, Larsen & Toubro, NHPC, NTPC, and Vedanta Ltd from its portfolio for serious offences ranging from production of coal or coal-based energy to environmental damage, sale of weapons to states in armed conflicts and production of tobacco and nuclear weapons.
The fund itself is a significant player in the oil and gas sector. It has been instrumental in financing oil and gas developers through bonds.
Against Norges Bank’s $43.9 million sale, domestic mutual funds have accumulated $500 million worth of AGEL shares since 2025 beginning, market data showed. Mutual funds have increased their exposure to Adani, which has grown 10x since beginning of 2025.
The fund has given a 6 per cent annualised return since 1998, among the lowest in the world.
Warren Buffet’s Berkshire Energy was also excluded by Norges. Among hundreds of companies they have excluded include Walmart, Boeing, Airbus, Philip Morris, British American Tobacco, Honeywell International and China State Construction Engineering company.
While Norges Bank sells its smallholding worth about ₹400 crore, mutual funds have invested $500 million in Adani stock – domestic mutual funds have increased their stake in AGEL 10x since beginning of 2025 – from 0.3 per cent to 3 per cent, market data showed.
In the past, Norges Bank also announced the exclusion of Adani Ports from its portfolio in May 2024 – the stock is up 18 per cent since.
Announcing the decision in May 2024, Norges Bank had stated that its Executive Board decided to exclude Adani Ports and Special Economic Zone Ltd “due to unacceptable risk that the company contributes to serious violations of individuals’ rights in situations of war or conflict.” It had not explained the alleged violations committed by APSEZ.
“The company (APSEZ) has been under observation since March 2022, but that observation now ends given the exclusion decision,” it had said.
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