Norway has reversed a ban on investment in bulker owner Thoresen Thai Agencies over its past ship recycling practices.
The council of ethics of sovereign wealth fund Government Pension Fund Global made the recommendation to central lender Norges Bank following a five-year prohibition on investments.
The fund also said it would halt observations regarding South Korean car carrier group Hyundai Glovis.
Investment in Thoresen Thai was banned in 2018 alongside Evergreen Marine Corp, Korea Line Corp and Precious Shipping.
Norges Bank said Thoresen Thai had been excluded “due to its practice of sending decommissioned vessels to be broken up for scrap in Bangladesh, where working conditions are extremely poor”.
The owner has not scrapped any more ships since 2018, and the basis for the ban is no longer present, the lender decided.
Hyundai Glovis was put under observation in 2022 for sending vessels to Pakistan and Bangladesh.
Norges Bank said the owner has established a new policy for responsible disposal of decommissioned vessels.
The council of ethics assessment said the practice of beaching was considered seriously polluting.
Thoresen Thai did not respond to the council’s queries or in any other way indicate the adoption of new policies regarding recycling.
The council gave weight to Hyundai Glovis’ assertion that it would, in future, consider better ways of recycling decommissioned vessels and that it had no plans to dispose of additional ships for breakup until 2024.
New policy
The council considered that this would give the company sufficient time to find better alternatives for recycling.
In February this year, Glovis said it had adopted a green recycling policy to minimise pollution and hazardous working conditions.
Ships will only be torched at yards that comply with the Hong Kong International Convention for the Safe & Environmentally Sound Recycling of Ships (the Hong Kong Convention) and other relevant regulations.
In March 2022, Wilh Wilhelmsen-controlled Glovis shareholder Treasure formally raised a human rights-related issue with Hyundai Glovis about “unacceptable vessel recycling practices” for time charter contracts.
Treasure asked Hyundai Glovis to implement a clear policy regarding scrapping ships according to the Hong Kong Convention, as it does for owned vessels.
