Stockholm (NordSIP) – The Norwegian pension company KLP excludes Adani Ports and Special Economic Zone Limited on the basis that the company’s activities in Myanmar and its business partnership with the country’s military pose an unacceptable risk of contributing to a breach of KLP’s guidelines for responsible investment. This is the first time that KLP has carried out a prudential investment that is a new criterion in the guidelines for responsible investments.
“Adani’s operations in Myanmar and its business partnership with the country’s armed forces pose an unacceptable risk of contributing to breaches of KLP’s guidelines for responsible investment,” says Kiran Aziz (Pictured), senior analyst at KLP Kapitalforvaltning.
Adani Ports, India’s largest port operator, has been investigated by international investors for its project to build a container port in the city of Yangon on land leased from a military-owned conglomerate in Myanmar. A military coup in Myanmar on February 1 and a subsequent attack on mass protests in which hundreds were killed led to international condemnation and sanctions against military personnel and military-controlled organisation. Adani has also been the source of controversy due to the Carmichael mining development in Queensland, Australia, which has had reputational repercussions investors and partners such as the State Bank of India (SBI) and Siemens.
KLP divested from Adani Ports because the container port is being built on land owned by the Myanmar military and there is an “imminent danger” that the armed forces could use the port to import weapons and equipment, or as a naval base. “The port could be used by the army to continue its violations of human rights,” says Kiran Aziz.
KLP, Norway’s largest pension fund, had an investment worth NOK 9 million ($ 1.05 million) in Adani Ports at the time of the decision. Aziz recently discussed KLP’s exclusions and engagement approach with NordSIP, including case studies involving Saudi Arabia and Shipbreaking.
Image Courtesy of KLP