Myanmar Energy Ties Are Flying Under the ESG Radar
South Korean Posco International appears in multiple ESG funds, despite links to the Myanmar military junta.
Posco International Corp. is one of the last foreign companies with a significant stake in Myanmar’s oil and gas sector, despite the industry’s ties to a military regime that has been widely condemned for violations of human rights.
The South Korean company also remains a holding in nearly a dozen ESG-focused funds, including those run by BlackRock Inc., State Street Corp. and Samsung Asset Management Co., according to Bloomberg data on the latest available filings. While Posco International derives just a small fraction of its global revenue from Myanmar — less than 4% comes from its energy business overall — its inclusion in ESG funds reflects a dividing line between investors on the issue of human rights. It also demonstrates how ESG investors’ reliance on ratings agencies and index funds can limit scrutiny of specific areas of concern.