*

BHP, Southern Co ( SO ) also removed from watch

*

Exclusion of six other companies revoked

(Recasts paragraph 1, updates with reasons in paragraphs 6-7,

and revocation of exclusion for six companies in paragraphs

10-11)

By Gnaneshwar Rajan

Oct 9 (Reuters) - Norway's sovereign wealth fund has

ended observation of Supermax Bhd, two years after

placing the Malaysian medical glove maker under watch over

allegations that the company was contributing to human rights

violations.

The trillion-dollar wealth fund said in a statement on

Wednesday that it has also ended the observation of Southern Co ( SO )

and BHP Group ( BHP ) for their coal usage and

production.

Norges Bank, guided by its Council on Ethics, may exclude

companies from the fund's investment universe, or place them

under observation, based on factors including human rights

abuses, weapon sales, and coal-related activities.

"According to the Council on Ethics, the company (Supermax)

has during the time of observation reported that it has

implemented several measures to improve conditions," Norges Bank

Investment Management (NBIM) said in a statement on Wednesday.

"The risk that the company is contributing to human rights

violations is no longer considered unacceptable."

NBIM's decision comes over a year after the United States

lifted a ban on Supermax, allowing it to resume sales. The

company's imports were barred from the U.S. in October 2021 over

the alleged forced labor practices.

Southern Co ( SO ), put under observation in 2016, has since

reduced its coal-based power capacity and production that now

stand "well below" the fund's threshold.

BHP, which was being monitored since 2020, has also reduced

its annual production of thermal coal ever since. The power

capacity fell below the fund's threshold in 2021.

Supermax, Southern Co ( SO ) and BHP did not immediately respond to

requests for a comment.

As part of Norges Bank's work on the product-based coal

criterion, the fund monitors company events and companies

entering the market.

The world's largest sovereign wealth fund also revoked

exclusion of coal-based power generators TXNM Energy ( TXNM ),

Public Power Corp, TransAlta ( TAC ), Eneva SA

, Capital Power ( CPXWF ), and coal miner Jastrzebska

Spolka Weglowa ( JSZWF ).

Monitored over the past seven years for their coal output or

coal-based power production, these companies have since reduced

the commodity's usage and production to levels that no longer

necessitate exclusion by the fund.

The companies did not immediately respond to Reuters'

requests for a comment.