Norway’s $2-Trillion Sovereign Wealth Fund Drops Adani Green Energy from Portfolio over Corruption and Financial Crime Allegations

Key Points

Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, has decided to exclude Adani Green Energy Ltd. (AGEL) from its portfolio. The decision was made public on 26 February 2026 on Norges Bank Investment Management’s website, which manages the fund on behalf of Norway’s Ministry of Finance.

The fund cited “gross corruption or other serious financial crime” as the criterion for its decision but did not provide a detailed explanation. The exclusion marks the second Adani Group company to be removed from the fund’s investment universe. In May 2024, Norges Bank excluded Adani Ports and Special Economic Zone Ltd., citing what it described as an “unacceptable risk” that the company could contribute to serious violations of individuals’ rights in situations of war or conflict.

At the time, the fund referred to the company’s ownership of a port terminal in Myanmar, where the armed forces had overthrown the democratically elected government. Adani Ports had been under observation since March 2022 before the exclusion decision was taken.

As of August 2025, the fund held a 0.23% stake in Adani Green Energy, valued at $43.9 million. Once a company is excluded, the fund sells its shares and does not reinvest unless the exclusion is lifted. When Norges Bank first invested in Adani Green in July 2020, the company’s share price stood at ₹341. On 27 February 2026, the stock closed at ₹948.2 on the Bombay Stock Exchange (BSE).

Norges Bank has not commented on whether the divestment has already been completed. The Norwegian fund itself is a significant player in the oil and gas sector and has financed oil and gas developers through bonds. Adani Green Energy has not issued an immediate response to the development.

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The Norwegian wealth fund, built from the country’s petroleum revenues, manages assets estimated between $1.9 trillion and $2.2 trillion. It is invested in thousands of companies across dozens of countries and owns about 1.5% of the world’s listed market capitalisation. The fund operates under ethical guidelines established by the Norwegian parliament.

Norges Bank’s exclusion decisions are guided by ethical criteria that bar investments in companies involved in activities such as coal production, environmental damage, human rights violations, tobacco, cannabis, and nuclear weapons. Over the years, the fund has excluded several Indian companies including Oil and Natural Gas Corporation (ONGC), Coal India Ltd.(CIL), Bharat Electronics Ltd. (BEL), Bharat Heavy Electricals Limited (BHEL), GAIL India Ltd., ITC, Larsen & Toubro, NHPC, NTPC and Vedanta Ltd. Globally, companies such as Walmart, Boeing, Airbus, Philip Morris, British American Tobacco, Honeywell International and China State Construction Engineering have also been excluded.

The exclusion comes in the backdrop of legal proceedings against the Adani Group in the United States. In November 2024, the US Securities and Exchange Commission (SEC) filed a civil complaint against Gautam Adani, chairman of Adani Green Energy, and Sagar Adani, the company’s executive director, alleging they orchestrated a bribery scheme involving payments or promises totalling hundreds of millions of dollars to Indian government officials. The charges relate to a September 2021 bond offering by Adani Green that raised over $175 million from US investors. US regulators maintained that the alleged bribery was not disclosed to American investors, constituting securities fraud. The case remains pending in a US court.

In January 2026, after India challenged the authority of US regulators to issue summonses, the US SEC sought permission from a federal court to serve Gautam Adani and Sagar Adani through their US counsel and email. Adani Green has clarified that the allegations and court proceedings were initiated against its executives and not against the company itself. Earlier, the conglomerate denied wrongdoing.

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