"The two companies operate refugee receptions centres in several US states and are among the largest providers of security services. Refugees at some of the reception centres are detained against their will and without legal cause. Such arbitrary detention is a violation of international law,” says Kiran Aziz, Head of Responsible Investment at KLP Kapitalforvaltning.
Aziz adds that the United Nation High Commissioner for Refugees (UNHCR) has criticised the companies’ practice of detaining refugees without legal cause or due process.
KLP has engaged the companies in dialogue with the aim of influencing them, but to no avail. KLP considers that the companies have shown little understanding of the allegations levelled against them. In their response to KLP, they have, moreover, denied that censurable conditions exist in their operations.
“The fact that the companies have violated several of the most important human rights over a long period of time has been documented by multiple human rights groups. The abuses have also been followed up by state-level authorities such as the Attorney General for the State of Washington. The abuses include poor living conditions, inadequate healthcare for residents suffering from life-threatening illnesses, slave-like working conditions and sexual assaults.
“The companies’ operations represent an unacceptable risk that KLP’s guidelines for responsible investment may be contravened. In our assessment, there is a considerable risk that the human rights abuses will continue. For this reason, we are excluding these companies,” says Aziz.
KLP and the KLP Funds owned shares worth around NOK 4 million in the companies concerned. These shares have now been sold.
For further information, please contact:
Kiran Aziz, Head of Responsible Investments at KLP Kapitalforvaltning. Phone: +47 95208194
Glenn Slydal Johansen, Communications Consultant at KLP. Pone: +47 93037976
KLP excludes companies that breach its guidelines for responsible investment. You can find more information about the companies that have been excluded, and the reason for their exclusion here.