Norway's Sovereign Wealth Fund Excludes Adani Green from Investment Consideration Due to Corruption Concerns

Norway's Sovereign Wealth Fund Excludes Adani Green Energy Ltd Due to Corruption Allegations

The Government Pension Fund Global, the world's largest sovereign wealth fund, has decided to exclude Adani Green Energy Ltd from its investment portfolio due to corruption and financial crime allegations against the company. As of 26 August 2025, the fund held a 0.23% stake in Adani Green Energy, worth $43.9 million, which is now subject to exclusion.

The decision was made public on Thursday when Norges Bank, which manages the sovereign wealth fund, added Adani Green to its exclusion list, making it the second group firm to feature among over 200 companies that do not align with the Norwegian wealth fund's ethics. Adani Ports and Special Economic Zone Ltd was added to the list on 15 May 2024 due to its ownership of a port terminal in Myanmar.

Norges Bank did not disclose the details or evidence supporting corruption allegations against Adani Green Energy. The fund's investment decisions can wield significant influence over foreign investors, given the scale of its assets, which own about 1.5% of the world's listed market capitalization.

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The exclusion decision comes amidst ongoing legal proceedings against Adani Group chair Gautam Adani and his nephew, Sagar Adani, who were indicted by US regulators in November 2024 for corruption and securities fraud. The case is pending in a US court.

Adani Green Energy's shares closed 1.77% lower at ₹948.2 on the BSE on Friday compared to a 1.17% decline in the benchmark Sensex. The scrip has lost over 7% so far this year against a drop of over 4% in Sensex.

Norges' decision is consistent with its strict investment criteria dictated by Norwegian law, which bars investments in companies that produce or sell tobacco or cannabis products, engage with coal mining or coal-based energy production, are part of the nuclear weapons ecosystem, or are accused of human rights violations. The fund's exclusion list contains 16 Indian companies, including Bharat Electronics Ltd, Bharat Heavy Electricals Ltd, and Vedanta Ltd.