According to Reuters, JPMorgan said both state-owned oil companies were expected to be removed from the index at the end of June as their scores had fallen below a required threshold and they were no longer eligible for inclusion.

JPMorgan uses outside firms to assess the ESG score required for inclusion in the index. Reuters reported that one of them, Sustainalytics, said some of Petronas’ or its affiliates’ activities in “high-risk regions” may be viewed as a violation of a United Nations arms embargo, according to the bank’s statement.

It said the decline in the score was also related to “ongoing exposure to multiple incidents related to human rights” and “the ongoing political situation in Myanmar”.

Petronas did not immediately respond to a Reuters request for comment.

According to the report, JPMorgan also said Pertamina’s score decline was partly due to a refinery fire in West Java that forced the evacuation of close to 1,000 people, as well as discussions with the government regarding a settlement over historical oil spills where cleanup was ongoing.

Petronas currently has a 121 basis points weight in the index, while Pertamina’s stands at 49 bps.