This due diligence-based divestment has been implemented on the grounds that Adani’s operations in Myanmar and its business partnership with that country’s armed forces constitutes an unacceptable risk of contributing to the violation of KLP’s guidelines for responsible investment.
This is the first time KLP is exercising a due diligence-based investment which is a new criteria in its guidelines for responsible investments.
Adani Ports, India's largest port operator, has been under scrutiny from international investors over its project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate.
A military coup in Myanmar on Feb. 1 and an ensuing crackdown on mass protests in which hundreds have been killed has drawn international condemnation and sanctions on military figures and military-controlled entities.
"Adani's operations in Myanmar and its business partnership with that country's armed forces constitutes an unacceptable risk of contributing to the violation of KLP's guidelines for responsible investment,” says Kiran Aziz, senior analyst in KLP Kapitalforvaltning.
KLP, Norway's largest pension fund, had an investment worth nine million crowns ($1.05 million) in Adani Ports at the time of its decision.
It was divesting because the container terminal is being built on land owned by the Myanmar military and that there is an "imminent danger" the armed forces could use the port to import weapons and equipment, or as a naval base.
"In this way, the port could be used by the army to continue its violations of human rights," says Kiran Aziz.
For more information, please contact:
Kiran Aziz, senior analyst KLP Kapitalforvaltning, +47 952 08 194