KUALA LUMPUR: The world's largest sovereign wealth fund from Norway has lifted observation on Supermax Bhd, two years after placing the glovemaker under watch over allegations that it was contributing to human rights violations.
Norges Bank Investment Management also ended the observation of Southern Co and BHP Group for their coal usage and production.
Norges Bank noted that Supermax had been under scrutiny since June 2022 due to concerns about its involvement in human rights violations.
Norges Bank said the decision is based on a recommendation from its Council on Ethics of June 26, 2024.
"According to the Council on Ethics, the company has during the time of observation reported that it has implemented several measures to improve conditions.
"The risk that the company is contributing to human rights violations is no longer considered unacceptable," the fund said in a statement.
As part of its work on the product-based coal criterion, Norges Bank said it monitors company events and companies entering the market.
"The purchases and sales of ownership stakes and subsidiaries may to a large extent determine whether a company is affected by the criterion or not."
As a result of such monitoring, Norges Bank said the executive board, based on a recommendation from the fund, had also decided to revoke observation of Southern Co and BHP Group.
The decision follows the United States lifting its ban on Supermax on Sept 20 last year, allowing the Malaysian glove manufacturer to resume sales after being previously penalised for alleged labour abuse.
The company's imports were initially banned in the US on Oct 21, 2021 due to alleged forced labour practices.
Despite the news, its stock price remained steady at 84 sen, with a market capitalisation of RM2.3 billion.