Unacceptable Companies Reinstated at KPL

Stockholm (NordSIP) – Following a semi-annual review of investments related to its Responsible Investment guidelines, KLP (Kommunal Landspensjonskasse), the largest pension fund in Norway with NOK 641 billion in AUM, has re-included AGL Energy, Alstrom, Chevron and L-3 Technologies in KLP and its funds’ investments.

The funds have increased their investments from 3,000 to 6,000 companies as a consequence of new investments in a global small-cap index.

AGL, the Australian energy company, had been excluded from KLP’s investments since December 2004 due to high returns from coal-based activities but has brought its coal-related profits 30 percent under KLP’s exclusion criteria. KLP decided to re-include AGL Energy in its portfolio based on the confirmation that it has shifted to low emission alternatives.

“We are happy to see AGL Energy moving away from coal-based energy and hope other companies excluded under this criteria will follow,” said KLP Head of RI Anne Kvam, according to Hegnar.no, a Norwegian financial daily.

Alstom was excluded by KLP since 2007 due to association with human rights violations in connection with a project in Sudan, which ended when General Electric took over Alstom’s energy division. Alstom was evaluated on the basis of its improving record on human rights and changes to ensure a more robust anti-corruption campaign. L-3 Technologies had been excluded in 2005 for human rights violations in connection with the Abu Grahib scandal, but has since sold its business and no longer provides assistance in capturing operations. Chevron was reinstated following the retraction of an oil-related lawsuit in Ecuador against Texaco, bought by Chevron in 2001, on the basis of forged documents.

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