S&P Dow Jones Indices on Tuesday said it was dropping Adani Ports and Special Economic Zone Ltd. (APSEZ) from the Dow Jones Sustainability Indices, citing the Indian company’s ties with Myanmar’s military.
Stating that APSEZ would be removed from the indices prior to market opening on April 15, S&P Dow Jones Indices observed that the decision had followed a “Media and Stakeholder Analysis triggered by recent news events pointing to heightened risks to the company regarding their commercial relationship with Myanmar’s military, who are alleged to have committed serious human rights abuses under international law”.
The Myanmar military has been accused of widespread human rights violations after a coup and has been slapped with sanctions by the United States.
The group, led by billionaire Gautam Adani, is building a port in Yangon on land leased from the military-controlled Myanmar Economic Corporation (MEC), which is among the entities that have been sanctioned by the U.S.
Last month, the Adani group said it would consult all stakeholders and authorities on the project after human rights groups alleged that the ports unit had an agreement to pay millions of dollars in rent to MEC.
