KLP Excludes Canadian Oil Following Review


Stockholm (NordSIP) – KLP (Kommunal Landspensjonskasse), the largest life insurance company in Norway with NOK 641 billion in AUM, has excluded a further four companies from its investment portfolio following its semi-annual review of investments related to KLP’s Responsible Investment guidelines. Three of the companies have been excluded due to income stemming from oil sands activities, while the fourth was excluded due to purchase of phosphate from Western Sahara.

KLP supplies and manages public occupational pensions to most of Norway’s municipalities, health enterprises and public companies.

- Promotion -

According to KLP and KLP Fund guidelines, KLP must not be invested in companies with 30 per cent or more in revenue from oil sands or oil sands and coal-based business combined. This means the exclusion of Canadian Natural Resources, MEG Energy Corporation and Athabasca Oil Corporation, all Canadian oil and gas companies, from KLP’s investment universe, according to Anne Kvam, Head of Responsible Investment in KLP Capital Management.

In addition, Innophos Holdings was excluded by KLP for the acquisition of phosphate from Western Sahara, which the company deemed to be an unacceptable risk of violation of basic ethical standards and thereby KLP’s RI guidelines. The company is excluded from KLP holdings as of June 2018.

KLP has now excluded a total of 185 companies for breaching its guidelines for Responsible Investments. The company is not averse to reinstating companies that have mended their ways, however, for example having reinstated AGL Energy, Alstrom, Chevron and L-3 Technologies late last year following the previous semi-annual RI review.

Image: (c) shutterstock.com_AlexRoz

Partner message

In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

Learn more

NordSIP Insights

Most read this week

Opportunities and Challenges in China

by Heidi Berg, independent impact investment and ESG consultant based in Shanghai China is among the least affected economies by the ongoing pandemic, and the...

AP1 Ushers in New Passive Fund