Norway's $1.35 trillion sovereign wealth fund has sold off all its remaining stakes in the Adani Group, citing concerns over environmental, social, and governance (ESG) issues. The fund, managed by a unit of the central bank, had previously held significant shares in three Adani companies: Adani Total Gas, Adani Ports & Special Economic Zone, and Adani Green Energy, with combined holdings worth over $199.7 million at the end of 2022.

Christopher Wright, head of ESG risk monitoring for the fund, emphasised that the decision to divest was influenced by longstanding concerns about how Adani Group handles environmental risks. The Norwegian fund, which owns about 1.3% of globally listed shares, has been reducing its stakes in Adani companies since 2014, completely exiting its positions by early 2023.

This move comes in the wake of allegations by Hindenburg Research, which accused Adani Group of improper use of offshore tax havens and stock manipulation, causing significant drops in the market value of Adani's companies. The Adani Group has denied these allegations and announced plans for an independent investigation.

Norway's decision reflects its cautious approach towards investments perceived to be at high risk of ESG violations, underscoring the increasing scrutiny on companies globally to adhere to sustainable and ethical practices.