Jeanett Bergan, Head of responsible investment in KLP Kapitalforvaltning.
Jeanett Bergan, Head of responsible investment in KLP Kapitalforvaltning.

KLP remove five companies from blacklist

| 02.07.19

KLP and the KLP funds ("KLP") has decided to remove the following five companies from it's exclusion list: Grupo Carso, General Dynamics Corp, Nutrien Ltd, Rio Tinto Ltd and Walmart Inc.

The following five companies will be included in KLP's investment from June 2019:

Rio Tinto Ltd og Rio Tinto Plc was excluded in 2008 on the basis of risk of severe environmental damage related to the Grasberg mine in Indonesia. The company has made it clear to the Council of Ethics of the Government Pension Fund Norway ("Ethical Council"), that they have signed an agreement to sell their ownership interest in the mine.

- Rio Tinto is one of the largest mining companies in the world, and has previously been a sizeable producer of coal. In 2018, the company completely divested it's coal business. It is therefore a great pleasure to include a company which has divested from a controversial gold and copper mine, and coal and as such no longer violates KLP's new exclusion criteria for coal companies, says Jeanett Bergan, Head of responsible investment in KLP Kapitalforvaltning.

Walmart Inc og Wal-Mart de Mexico SAB de CV was excluded in 2003 on the basis of risk of gross or systematic violations of human rights. The Ethical Council now considers that the risk of such violations no longer is present.

Grupo Carso SAB de CV was excluded in 2011 on the basis of production of tobacco. The company has made it clear before the Ethical Council that it is no longer involved in the production of tobacco.

General Dynamics Corp was excluded in 2005 on the basis of production of class munitions. The company has made it clear before the Ethical Council that this production has ended. 

Nutrien Ltd, formerly Potash Corporation of Saskatchewan, was excluded in 2011 based on the risk of violation of fundamental ethical norms in conjunction with the company's operation in West-Sahara. The Ethical Council now considers this that the company's operations in this areas has ceased.

Norges Bank (Norway's central bank) announced the repeal of the exclusion of these companies from the Government Pension Fund Norway's investment in June 2019. KLP has considered the recommendations made by the Ethical Council and has decided to follow these recommendations for it's investments.  

- KLP is happy to reinvest in these companies. All of them is included due to positive change in companies business, says Bergan.

For more information please contact:

Jeanett Bergan, Head of responsible investment KLP Kapitalforvaltning. Tel. 920 38 589