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KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
1
Company Country Industry Reason for exclusion
Human rights
AES USA Utilities AES operates the hydropower dam Chan 75 in Panama, which according
to UN reports is associated with violations of the human rights of the
Ngöbe people. In 2008, the UN sent appeals to the state of Panama,
warning of forced displacement, loss of housing, destruction of arable
land and widespread use of violence and arrests of members of the
indigenous group that opposed project plans. Construction of the dam has
resulted in flooding and forced displacement of the Charco la Pava
community, but the residents are reported to not have been consulted.
The company was excluded in 2008.
Alstom France Capital goods In 2007, a special representative for the UN Human Rights Council called
on companies involved in the Merowe Dam project in Sudan to halt
operations due to reports of human rights violations in connection with the
massive forced displacement of local residents; approximately 50,000
people are estimated to have been forced to move owing to the dam's
construction. Alstom was among the involved companies, as the main
supplier of electric equipment to the project. None of the companies
followed the UN special representative's recommendation.
The company was excluded in 2007.
POSCO DAEWOO
South Korea
Capital goods
Formerly, Daewoo International Corporation
POSCO DAEWOO is one of the largest buyers of cotton from Uzbekistan. The Uzbek
state maintains a monopoly on the sale of cotton abroad and the use of child labor
during the cotton harvest has long been confirmed by international sources. The use of
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
2
child labor has steadily declined, but has been replaced with a corresponding increase
in the use of adult forced labor. The companies are aware of the risk, but have no plans
to change their sourcing practices and have not implemented measures designed to
ensure that forced labor and child labor are not used in their supply chain in the future.
The company was excluded in 2014.
L-3 Communications
USA
Capital goods
The US Army's report on abuse and torture at the Abu Ghraib prison in
Iraq from 2003-2004 determined that employees of the company Titan
were complicit or present during the abuses. According to the report,
Titan has not addressed these issues adequately, nor given sufficient
instructions to its employees. Titan was subsequently acquired by L-3
Communications, which thereby took over responsibilty. The company
continues to deliver interpretation services to the US Army. The company
must therefore establish mechanisms to avoid the occurrence of future
human rights violations.
The company was excluded in 2005.
Olam
International
Singapore
Food and staples
retailing
Olam International sources 10,000 tons of cotton from Uzbekistan annually. The Uzbek
state maintains a monopoly on the sale of cotton abroad and the use of child labor
during the cotton harvest has long been confirmed by international sources. The use of
child labor has steadily declined, but has been replaced with a corresponding increase
in the use of adult forced labor. The company is aware of the risk and over the last few
years has reduced significantly the amount of cotton it purchases from Uzbekistan.
Nevertheless, the company continues to purchase cotton despite its inability to monitor
whether forced labor or child labor are used within its supply chain in Uzbekistan going
forward.
The company was excluded in 2014.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
3
POSCO South Korea Materials POSCO is the majority shareholder in POSCO DAEWOO , a company that is among
the largest purchasers of cotton from Uzbekistan (see discussion of POSCO
DAEWOO). The Uzbek state maintains a monopoly on the sale of cotton abroad and
the use of child labor during the cotton harvest has long been confirmed by
international sources. The use of child labor has steadily declined, but has been
replaced with a corresponding increase in the use of adult forced labor. The companies
are aware of the risk, but have no plans to change their sourcing practices and have not
implemented measures reasonably designed to ensure that forced labor and child labor
are not used in their supply chain in the future.
The company was excluded in 2014.
Vedanta Limited* India Materials Formerly, Sesa Sterlite.
Vedanta Limited is a joint venture partner in the aluminum factory currently under
construction in Orissa, India, in which Vedanta Resources is the controlling
shareholder. See Vedanta for the rationale for exclusion.
Vedanta Resources* UK Materials Vedanta Resources is in the process of establishing aluminum production in Orissa,
India. According to Indian authorities, during this process, the company has violated
Indian environmental laws, misled authorities, and caused serious environmental
damage. The facility's establishment requires the felling of several square kilometers of
forest in one of India's most biodiverse regions, which is home to several threatened
species. Furthermore, the company is accused of illegally expanding production,
irresponsible hazardous waste management, violations of indigenous rights, and poor
wages and dangerous working conditions in its mines and factories.
The company was excluded in 2007.
Zuari Agro Chemicals India Materials Zuari Agro Chemicals Ltd. (Zuari) is excluded due to an unacceptable risk that the
company, through its production of hybrid seeds, is complicit in the worst forms of
child labor.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
4
The Council on Ethics for the Government Pension Fund – Global researched the scale
of child labor in the company's hybrid seed production in 2011 and 2012. On average, it
was discovered that from 20 to 30 percent of the workforce involved in the production
of seeds for the company consisted of children. In its evaluation, the Council has placed
emphasis on the systematic use of children in the company's production. The children's
young age and the health risk to which they are exposed through this work, including
the use of pesticides, indicates that this can be considered among the worst forms of
child labor. The Council on Ethics has furthermore emphasized that the risk of child
labor is well known within the industry, that the company is in close cooperation with
the farmers that employ child labor, and that the company does not have any concrete
measures to reduce the incidence of child labor.
The company was excluded in 2013.
Labor rights
Wal-Mart Stores
USA
Food and staples
retailing
A constant stream of reports in the media and court cases indicate the existence of
systematically poor working conditions at Wal-Mart. The company is criticized for
repeated violations of labor rights in several areas. The criticism involves child labor,
factories that exploit workers, discrimination against women and efforts to resist
unionization. One example is that 67,500 former and current employees in 2008 won a
court case in which Wal-Mart was found to have systematically withheld employee
wages. The judgement was handed down from the highest court in Massachusetts, and
more than 30 similar cases against Wal-Mart are active in other American states.
Another example is a class action lawsuit where 1,6 million employees and former
employees accuse the company of systematically discriminating against women.
The company was excluded in 2003.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
5
Environment
Barrick Gold
Canada
Materials
Barrick Gold, the world's largest gold producer, operates, inter alia, the Porgera mine
in Papua New Guinea. The company uses a natural river system for the transportation
and deposition of mine waste. This has both a physical and chemical impact that affects
water quality, human beings and animal life. The release of heavy metals such as
mercury will be highly problematic long into the future. The waste contains high
concentrations of, inter alia, arsenic, cadmium, copper, lead and zinc. The
environmental damage that depositing mine waste in river systems can cause is well
known, but the company has not implemented significant measures to prevent or reduce
this damage.
The company was excluded in 2009.
Chevron USA Energy (oil and gas) A court case against Chevron began in 2004 over waste management in the Ecuadorian
rainforest where ChevronTexaco, as the company was then known, operated from the
1960's to the 1990's. The court found against Chevron in 2013. The company is accused
of having, over many years, dumped larged quantities of poisonous, carcinogenic
waste, and thereby polluted water and soil for many local communities. Chevron
contests the findings in several of the investigations that have been made, but in 2008,
an independent investigation confirmed that 42 of 46 waste sites have high levels of
poison, and that the majority of these are not included in Chevron's remediation
program, which the company and the Ecuadorian authorities had agreed upon. As a
result, the court case against Chevron involves not only the environment, but also
claims of fraud.
The company was excluded in 2002.
Duke Energy Corp.,
including the
subsidiaries Duke
Energy Carolinas
USA Utilities The company was previously excluded for coal-based activities. As this know
comprises a smaller proportion of the company's revenues, the exclusion is now based
on the risk of severe environmental damage. Duke Energy and the named subsidiaries
are excluded from the Government Pension Fund Global for repeated violations
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
6
LLC, Duke Energy
Progress LLC,
Progress Energy Inc.
connected to the treatment of ash waste from coal power plants in the USA. The waste
depots are not expected to be removed before 10 to 15 years from now.
The company was excluded in 2016.
Freeport McMoRan
USA Materials Freeport McMoRan Copper & Gold operates the world's largest gold mine and second
largest copper mine on New Guinea in Indonesia. The company deposits mine waste in
a natural river system, and heavy metal runoff has from the company's landfills for
waste rock and tailings has been documented. The company dumps as much as 230,000
tons per day. Comprehensive documentation shows that the company's activities have
caused widespread and permanent environmental damage to the ecosystems in and
along the entire watercourse and that the company has only to a limited extent
implemented measures to prevent or mitigate this damage.
The company was excluded in 2006.
Genting Berhad
Malaysia
Hotels, restaurants &
leisure
Genting Berhad, through its subsidiary, Genting Plantations Berhad, is excluded due to
an unacceptable risk that the company's ongoing conversion of rainforest to oil palm
plantations in Indonesia will cause a serious loss of biodiversity. The company has not
indicated it will engage in mitigating measures sufficient to lessen the risk of severe
environmental damage.
The company was excluded in 2015.
Genting Plantations
Berhad
Malaysia
Food
products
Genting Plantations Berhad is excluded due to an unacceptable risk that the company's
ongoing conversion of rainforest to oil palm plantations in Indonesia will cause a
serious loss of biodiversity. The company has not indicated it will engage in mitigating
measures sufficient to lessen the risk of severe environmental damage.
The company was excluded in 2015.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
7
IJM Corporation
Berhad
Malaysia Construction and
engineering
IJM Corporation Berhad, through its subsidiary, IJM Plantations Berhad, is engaged in
the conversion of rainforest to palm oil plantations in an area of rich and unique
biodiversity in Indonesia. The company has not announced how it has mapped high
conservation values within the affected concessions. Nor has it announced significant
mitigating measures to stem the potentially irreversible loss of biodiversity.
The company was excluded in 2015.
IJM Plantations
Berhad
Malaysia
Food
products
IJM Plantations Berhad is engaged in the conversion of rainforest to palm oil
plantations in an area of rich and unique biodiversity in Indonesia. The company has
not announced how it has mapped high conservation values within the affected
concessions. Nor has it announced significant mitigating measures to stem the
potentially irreversible loss of biodiversity.
The company was excluded in 2015.
Lingui Development Malaysia Paper and forest
products
Lingui Developments Berhad produces, among other things, timber and wood products.
Investigations by the Council on Ethics for the Government Pension Fund – Global
documented what appears to be comprehensive and repeated violations of concession
requirements and regulations in all of the company concessions that were investigated.
Some of the violations were extremely serious, such as logging outside of the
concession areas, logging in protected areas that were excluded by the authorities from
the concession for inclusion in an existing national park, and the completion of second-
generation logging without an environmental impact assessment.
The company was excluded in 2011.
Madras Aluminium
Company
India Metals and mining Madras Aluminium Company (Malco) is a listed subsidiary of Vedanta. The company
is recommended excluded by the Council on Ethics for the Government Pension Fund –
Global in the same recommendation as the parent company. Malco generates
significant quantities of pollution and hazardous waste. The accusations have been
directed especially at the disposal of red mud, a waste prouct from refining bauxite. It
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
8
is, however, also reported that operation of the mines, smelters and power plants entails
significant environmental consequences and health damage for the local population.
The company was excluded in 2008.
Noble Group Ltd.
Singapore
Capital goods
Noble Group owns through two subsidiaries concession areas in, respectively, Papua
and West Papua, in Indonesia, where the company plans to convert forest to palm oil
plantations. The area has a unique biological diversity that cannot be found in any other
part of the world. The company has completed pre-development studies of the
concession areas' conservation value, known as "high conservation value" or "HCV"
assessments. Technical experts retained by the Council on Ethics for the Government
Pension Fund – Global have identified significant weaknesses in these HCV
assessments, which in KLP's estimation the company has not addressed in a sufficient
manner. Neither does the company have any plans to undertake new assessments, or
submit the existing assessments for third party peer review. Although the company is a
member of the Roundtable on Sustainable Palm Oil, that organization's currently
applicable requirements are more stringent than those which prevailed when the HCV
assessments were undertaken. Due to all of the above reasons, KLP determines that
there exists an unacceptably high risk that the company, through the conversion of
rainforest to palm oil plantiations, will cause serious environmental damage.
The company was excluded in 2015.
Norilsk Nickel Russia Materials Norilsk Nickel's Polar division in Siberia has emitted large quantities of sulfur dioxide,
nickle and heavy metals for many years. These emissions have lead to the death or
significant damage of vegetation up to 20 kilometers from the facilities. The air
pollution has also led to significant health problems among the local population.
Respiratory illness and various forms of cancer are far more common here than in other
parts of Russia. The environmental damage is comprehensive, long-term, and in some
cases, irreparable. Although the company has implemented measures in recent years to
reduce the release of metals into the environment, the levels remain high and sulfur
dioxide emissions are essentially unchanged. In the Council's opinion, the company
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
9
does not appear to be in compliance with national environmental standards, and does
not appear to have plans to remediate polluted areas.
The company was excluded in 2009.
Rio Tinto UK Metals and mining Together with Freeport McMoRan, Rio Tinto owns the world's largest gold mine and
the world's next largest copper mine on New Guinea in Indonesia. The Grassberg mine
emits large quantities of tailings, approximately 230,000 tons per day, directly into a
natural river system. These tailings will increase going forward, in conjunction with
expansion of the mine. Furthermore, there is a large risk that the runoff of heavy metals
from the company's landfills for waste rock and tailings pollute the soil and
watercourses. The mine is expected to be operational through 2041, which must be
considered to imply a severe impact on the environment as nothing indicates that the
company will change these practices in the future.
The company was excluded in 2008.
Samling Global Malaysia Paper and forest
products
The Malaysian forestry company Samling Global is recommended for exclusion by the
Council on Ethics for the Norwegian Government Pension Fund – Global due to illegal
logging and serious environmental damage. The Council on Ethics has investigated the
company's activities in Sarawak (Malaysia) and Guyana.
The company was excluded in 2010.
Ta Ann Berhad
Holdings
Malaysia Materials Ta Ann Holdings Berhad (Ta Ann) is excluded due to an unacceptable risk that the
company, through its forestry operations, is responsible for severe environmental
damage. Ta Ann is a Malaysian forestry company with its principal place of business
on Borneo in Sarawak, Malaysia. The company engages in logging of tropical forest,
and is in addition in the process of converting large forest areas to plantations for the
production of wood and palm oil.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
10
The Council on Ethics for the Government Pension Fund – Global has evaluated the
environmental impact connected to logging and deforestation in Ta Ann's concession
areas in Sarawak. The Council has evaluated in particular to what extent the concession
areas overlap with areas of high ecological value, and the consequences that conversion
of forest entails for threatened species and their habitat.
The company was excluded in 2013.
Tokyo Electric Power
Company
Japan Utilities In 2011, the nuclear power plant Fukushima Dai-ichi, which is owned by Tokyo
Electric Power Company (TEPCO), was hit by an earthquake and accompanying
tsunami. Although TEPCO and the company's leadership did all that they could to
prevent the catastrophic consequences the accident caused, and can be considered to
have done everything correctly in an emergency situation, the consequences of the
tsunami and the accident could have been reduced, and perhaps avoided entirely,
through greater attention to risk in advance. In addition, the company has not managed
to obtain control over the situation following the accident, nor to prevent additional
spills. There remains a large risk of further leakages of radioactive material from the
nuclear power plant. KLP therefore considers investment in TEPCO to entail a risk of
complicity in severe environmental damage, and therefore a violation of KLP's
guidelines for responsible investment.
The company was excluded in 2013.
Vedanta Limited* India Materials Formerly, Sesa Sterlite.
Vedanta Limited is a joint venture partner in the aluminum factory currently under
construction in Orissa, India, in which Vedanta Resources is the controlling
shareholder. See Vedanta for the rationale for exclusion.
Vedanta Resources* UK Materials Vedanta Resources is in the process of establishing aluminum production in Orissa,
India. According to Indian authorities, during this process, the company has violated
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
11
Indian environmental laws, misled authorities, and caused serious environmental
damage. The facility's establishment requires the clearing of several square kilometers
of forest in one of India's most biodiverse regions, which is home to several threatened
species. Furthermore, the company is accused of illegally expanding production,
irresponsible hazardous waste management, violations of indigenous rights, and poor
wages and dangerous working conditions in its mines and factories.
The company was excluded in 2007.
Volcan Compañia
Minera
Peru Materials The Council on Ethics for the Government Pension Fund – Global recommends
exclusion of the Peruvian company Volcan Compañia Minera SAA (Volcan) due to the
unacceptable risk that the company, through its mining operations in Cerro de Pasco,
Peru, is complicit in serious environmental damage. Volcan is Peru's largest producer
of lead and silver, as well as the country's second largest producer of zinc. The mine is
located within a city of 70,000 inhabitants. Since mining operations take place within
populated areas of the city, the Council has placed emphasis on the consequences of
mining operations for human life and health, especially the risk of illness and injury
among children, owing to high lead concentration in the soil and water.
The company was excluded in 2013.
WTK Berhad
Holdings
Malaysia Materials WTK Holdings Berhad (WTK) is excluded due to an unacceptable risk that the
company, through its logging operations, is responsible for serious environmental
damage. WTK is a Malaysian forestry company that engages in logging and the
production of plywood and lumber.
The Council on Ethics for the Government Pension Fund – Global has placed emphasis
on the environmental damage connected to the conversion of tropical forest to
plantations, environmental damage from logging, and that the company's operations
appear to violate the usual concession conditions and can therefore be assumed to be
illegal. In its evaluation, the Council emphasized the scale of the damage and the extent
to which it entails long-term or irreversible effects, whether the environmental damage
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
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violates national standards and international norms, and what the company has done to
mitigate the effect of the damage.
The company was excluded in 2013.
Zijin Mining Group China Materials Zijin Mining Group Co. Ltd. (Zijin) is excluded due to an unacceptable risk that the
company, through its operations, will cause serious environmental damage. Zijin is a
large producer of gold, copper and zinc, and has several facilities for mineral extraction
and metal production. Over the past few years, there have been several serious
incidents at the company's facilities where landfill dams for mining and process waste
have collapsed, leading to widespread pollution and the loss of human life. The
incidents involved landfill dams that have collapsed, such that large quantities of
mining waste, industrial waste and hazardous chemicals have washed into waterways or
flooded settlements and arable land. In the span of the past ten years, seven such
incidents have been reported at the company's facilities in China.
The company was excluded in 2013.
Corruption
Centrais Eletricas
Brasileiras SA
(Eletrobras)
Brazil Electric
utilities
Eletrobras is excluded due to an unacceptable risk of gross corruption. According to its
reports to US financial authorities, the company's contracts with suppliers have been
inflated over a period of nearly seven years, with the excess paid to Brazilian
politicians, political parties and company executives. Until October 2016, Eletrobras
risked delisting from the New York Stock Exchange. This was due to incomplete
accounting for corruption in its financial reports after the company's auditor refused to
approve the reports for 2014 and 2015. The company no longer faces delisting, but
writes to US financial authorities that it could take close to two years before a
comprehensive anticorruption program is in place.
The company was excluded in 2016.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
13
China Railway Group,
Ltd.
China
Capital
goods
China Railway Group, Ltd. has been associated with serious corruption, inter alia,
through the payment of bribes to public officials in China to secure the company
railway contracts. The bribe recipients have later been punished through the court
system and the Communist Party's disciplinary processes. CRG's leadership is
essentially unchanged since that time, and publicly available information about the
company's ethical guidelines indicate major omissions relative to the routines in
operation in the rest of the industry. Neither has the company responded to KLP's
inquiries about the case. Therefore, the risk that CRG will be involved in future serious
corruption is considered to be unacceptably high.
The company was excluded in 2015.
Petróleo Brasileiro
S.A. (Petrobras)
Brazil
Energy
Petrobras is involved in the largest corruption scandal in Brazilian history. Over more
than a decade, the company's contracts with suppliers were routinely inflated by three
percent of the contract sum, with the proceeds paid in bribes to Brazilian politicians,
political parties and Petrobras executives. Despite the company's many remedial
measures and continued outside pressure, KLP remains convinced that there remains an
unacceptable risk that the company will be involved in corruption in the future.
The company was excluded in 2016.
ZTE Corporation
China
Technology Hardware
& Equipment
ZTE Corporation has been under investigation for 10 corruption cases. It has been
temporarily barred from public bidding processes and, in one case, received a corporate
criminal conviction. In sum, the allegations encompass over 18 countries. ZTE
Corporation has not communicated any new measures undertaken to prevent
recurrence. KLP concludes that the company continues to face an unacceptably high
risk for involvement in corruption.
The company was excluded in 2016.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
14
Rights of individuals in war and conflict
AFI Group Israel Real estate AFI Group is involved in the construction of Israeli settlements in the Occupied Palestinian
Territories. In 2009, subsidiary Danya Cebus constructed housing in three settlements in the
region. According to international law, especially the Fourth Geneva Convention relative to
the Protection of Civilian Persons in Time of War, the Israeli settlements are illegal. Several
UN Security Council Resolutions and an International Court of Justice Advisory Opinion
have concluded that the establishment of Israeli settlements on occupied Palestinian territory
is illegal according to this convention.
The company was excluded in 2010.
Danya Cebus Israel Engineering and
construction
See the reason for exclusion of AFI Group.
The company was excluded in 2010.
Shikun & Binui
Israel
Engineering and
construction
Shikun & Binui Ltd. is involved in the construction of Israeli settlements in East Jerusalem
and has previously also been involved in the building of settlements on occupied territory in
the West Bank and in East Jerusalem. The International Court of Justice, the UN Security
Council and the International Committee of the Red Cross (ICRC) have all determined that
the construction of Israeli settlements in the West Bank and in East Jerusalem violates the
Fourth Geneva Convention. The purpose of this convention is to protect civilians in time of
war and occupation.
The company was excluded in 2012.
Other ethical norms
Agrium Inc. Canada Materials Agrium has confirmed that the company imports phosphate from Western Sahara. The
International Court of Justice has determined that Morocco has no legal claim to Western
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
15
Sahara and, accordingly, none to Western Sahara's natural resources. Extraction of natural
resources from occupied territory, in particular, in Western Sahara, has also been declared
illegal by the UN Under-Secretary-General for Legal Affairs in 2002.
The company was excluded in 2014.
Cairn Energy UK Oil & Gas
exploration
Through a 20 % ownership stake in a joint venture with Kosmos Energy Ltd. and the Office
National des Hydrocarbures et des Mines (ONHYM), Cairn holds a license issued by
Moroccan authorities for oil exploration off the coast of Western Sahara. KLP and the KLP
Funds consider investment in Cairn to be in violation of the KLP and KLP Funds' guidelines
for responsible investment, and the company's activities on the continental shelf off the
coast of Western Sahara are associated with violations of fundamental ethical norms.
The company was excluded in 2016.
Elbit Systems
Israel Capital goods Elbit Systems supplies an electronic surveillance system that is a component in the
separation barrier that Israeli authorities have constructed along the West Bank. The
sections of the barrier that lie within the Occupied Palestinian Territories are considered
illegal under international law. Through its supply of this system, Elbit contributes to
support illegal activities.
The company was excluded in 2009.
Glencore plc
UK Metals and mining Glencore is conducting exploration and seismic studies of possible oil reserves under the
continental shelf off the coast of Western Sahara. KLP considers investment in Glencore to
be in conflict with KLP's guidelines for responsible investment and has conclude that the
company's operations on the continental shelf off the coast of Western Sahara are associated
with a violation of fundamental ethical norms.
The company was excluded in 2015
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
16
HeidelbergCement
Germany Materials HeidelbergCement is excluded due to the company's extraction of natural resources from
occupied territory. Through a subsidiary, HeidelbergCement operates a quarry in Area C
in the West Bank, an area under full Israeli civil and military control. The quarries were
established after the occupation began and license fees and royalties are paid to the
Israeli state. Based on a review of the law of belligerent occupation, KLP concludes that
the activities are not consistent with the international law principle that occupation shall
be temporary. Neither does this resource extraction benefit the local population.
Therefore, the operation of a quarry on occupied territory that was opened after the
occupation constitutes an unacceptable risk of violating fundamental ethical norms.
The company was excluded in 2015.
Incitec Pivot Australia Chemicals Incitec Pivot imports phosphate rock from Western Sahara, which is under Moroccan
occupation. The International Court of Justice has determined that Morocco has no legal
claim to Western Sahara, and by extension, no legal claim to Western Sahara's natural
resources. Extraction of natural resources from occupied territory, in particular, in
Western Sahara, has also been declared illegal by the UN Under-Secretary-General for
Legal Affairs in 2002.
The company was excluded in 2009.
Kosmos Energy Ltd. USA Oil & Gas
exploration
Through a 55 % ownership stake in a joint venture with Cairn Energy Plc. and the Office
National des Hydrocarbures et des Mines (ONHYM), Kosmos holds a license issued by
Moroccan authorities for oil exploration off the coast of Western Sahara. Kosmos is also the
operator. KLP and the KLP Funds consider investment in Kosmos to be in violation of the
KLP and KLP Funds' guidelines for responsible investment, and the company's activities on
the continental shelf off the coast of Western Sahara are associated with violations of
fundamental ethical norms.
The company was excluded in 2016.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
17
Potash Corp
Saskatchewan
Canada Chemicals Potash has confirmed that a fully-owned subsidiary imports phosphate rock from
Western Sahara. The International Court of Justice has determined that Morocco
has no legal claim to Western Sahara, and by extension, no legal claim to Western
Sahara's natural resources. Extraction of natural resources from occupied territory,
in particular, in Western Sahara, has also been declared illegal by the UN Under-
Secretary-General for Legal Affairs in 2002.
The company was excluded in 2010.
San Leon Energy PLC Ireland Energy San Leon Energy conducts oil exploration off the coast of Western Sahara on the basis of a
contract with the Moroccan authorities. KLP considers investment in San Leon Energy to be
in conflict with KLP's guidelines for responsible investment and has conclude that the
company's operations on the continental shelf off the coast of Western Sahara are associated
with a violation of fundamental ethical norms.
The company was excluded in 2016.
Weapons producers
Aerojet Rocketdyne
Holdings
USA Capital goods Formerly, GenCorp.
Aerojet Rocketdyne Holdings produces cluster munitions components. The company
markets warheads for the weapons systems GMLRS, MLRS and ATACMS on its website.
All three meet the definition of cluster munitions as set out in the Convention on Cluster
Munitions. Aerojet Rocketdyne Holdings is also involved in the production of nuclear
weapons. The company produces propellants for missiles that have no other function than to
deploy nuclear warheads.
The company was excluded in 2008.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
18
Airbus Group,
including bonds issued
by Airbus Group
Finance B.V.
The
Netherlands
Capital goods The company is complicit in the production of nuclear weapons. Formerly, EADS.
The company was excluded in 2005.
BAE Systems
UK Aerospace and
defense
BAE Systems is involved in the production of nuclear weapons through its contract with
the US Air Force for maintenance and upgrading of the Minuteman III ICBM weapons
system, valid through 2021. This is considered nuclear weapons production as
components must be updated and replaced on a rolling basis in order to keep a several-
decades-old weapon system technologically updated.
The company was excluded in 2015.
Boeing
USA
Capital goods
According to information on its website, Boeing supplies various forms of maintenance and
upgrades of the Minuteman III ICBM. ICBMs are the main component in US land-based
strategic nuclear weapons.
The company was excluded in 2006.
BWX Technologies
Inc.
USA
Capital goods
Previously, Babcock & Wilcox Company.
BWX Technologies is involved in the development and operation of central elements and
services connected to nuclear weapons. The company operates two nuclear weapons
facilities on behalf of the US military.
The company was excluded in 2011.
Leonardo -
Finmeccanica
Italy Capital goods Previously, Finmeccanica
Leonardo-Finmeccanica is part-owner in the joint venture company MBDA.
MBDA has according to Jane’s Air Launched Weapons a contract to develop and
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
19
produce the ASMP-A missile for the French air weapons system. ASMP-A is
described as a "nuclear warhead air-to-surface missile”.
The company was excluded in 2006.
Fluor Corp.
USA Construction and
engineering
Through a joint venture with Honeywell and Huntington Ingalls Industries, Fluor
Corp. provides the US military with its sole source of tritium gas. Tritium is a
central component in nuclear warheads. The companies deliver the gas in a
concentration intended for weapons use only.
The company was excluded in 2015.
General Dynamics USA Capital goods General Dynamics is involved in nuclear weapons production and in the US
nuclear weapons defense system. In addition, the company has produced cluster
munitions, but stated in 2010 that it no longer markets or produces this type of
weapon. Nevertheless, the company will not guarantee that it will not produce
cluster munitions in the future.
The company was excluded in 2005.
Hanwha South Korea Materials Hanwha Corporation has confirmed to the Council on Ethics for the Government
Pension Fund – Global that it produces air- and surface-delivered cluster
munitions. The company also markets these on its website.
The company was excluded in 2008.
Honeywell
International
USA Capital goods Through its subsidiary Honeywell Technology Solutions Inc., the company is
responsible for the repair, development, calibration, operation and maintenance of
measuring instruments, as well as the registration of data for nuclear weapons
detonation simulations at White Sands Missile Range in New Mexico.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
20
The company was excluded in 2006.
Huntington Ingalls
Industries
USA Aerospace and
defense
Through a joint venture with Honeywell and Fluor Corp., Huntington Ingalls
Industries provides the US military with its sole source of tritium gas. Tritium is a
central component in nuclear warheads. The companies deliver the gas in a
concentration intended for weapons use only.
The company was excluded in 2015.
Jacobs Engineering
USA
Construction and
engineering
Jacobs Engineering Group is involved in the development of central elements and services
connected to nuclear weapons. The company's joint venture, Atomic Weapons
Establishment (AWE), is involved in the production and maintenance of warheads for the
Trident II missile system, which is a part of the British nuclear defense system.
The company was excluded in 2010.
Lockheed Martin USA Capital goods The company is involved in the development of central components and services
connected to nuclear weapons. The company's joint venture Atomic Weapons
Establishment (AWE) is involved in the production and maintenance of warheads
for the Trident II missile system, which is part of the British nuclear defense
system.
The company was excluded in 2005.
Northrop Grumman USA Capital goods The company is, according to its own press release, contracted to complete
maintenance and upgrading of the US Air Force’s Minuteman III ICBMs. ICBMs
constitute the main component of the United States' land-based, strategic nuclear
weapons.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
21
The company was excluded in 2006.
Orbital ATK USA Capital goods Formerly, Alliant Techsystems.
Orbital ATK has been involved in several weapon projects, both as a supplier of
special components and as the main producer of whole cluster munitions. The
company no longer produces cluster munitions, but follows US policy on the
subject and will produce if there is demand. Alliant Techsystems is also involved
in the production and maintenance of nuclear weapons (US nuclear defense
system).
The company was excluded in 2005.
Poongsan Corporation South Korea Materials Poongsan Corporation produces various types of ammunition for military use,
hereunder, cluster munitions. On its website, the company describes three
variations of this type of weapon.
The company was excluded in 2008.
Poongsan Holdings
Corporaiton
South Korea Materials Poongsan Holdings owns 32 percent of Poongsan. See the reason for exclusion of
Poongsan.
The company was excluded in 2007.
Raytheon USA Capital goods Raytheon is involved in the development of central elements and services
connected to nuclear weapons. The company is involved in the Trident II missile
system, which is a part of the US nuclear defense system. According to its website,
the company also produces JSOWs (joint stand off weapons) and cluster
ammunition for these. This weapon is considered a cluster munition. This
information is confirmed by Jane’s Information Group.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
22
The company was excluded in 2007.
Safran Group Frankrike Capital goods Safran is the parent company for the companies Snecma and Sagem, which
according to Jane’s Missiles and Rockets are producing a new missile system
(M51) for strategic nuclear weapons for the French Navy.
The company was excluded in 2007.
Serco Group UK Commercial services
and supplies
Serco Group has confirmed that the company produces weapons that can be
characterized as nuclear weapons. Through a joint venture with Atomic Weapons
Establishment, the company maintains the UK's nuclear weapons.
The company was excluded in 2008.
Singapore
Technologies,
including bonds issued
by ST Engineering
Financial
Singapore Capital goods The company has confirmed that it produces landmines – not for export, but for
Singapore's defense. Singapore has not signed the Anti-Personnel Mine Ban
Convention.
The company was excluded in 2001.
Textron USA Capital goods Textron develops, produces and markets cluster munitions and components of
cluster munitions that are prohibited under the Convention on Cluster Munitions.
The company claims that altering the design of this type of weapon could be a
possibility in order to comply with the convention, but that the company is not
"convinced that this would be the best solution to eliminate the unacceptable risk
for civilians."
The company was excluded in 2008.
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
23
Tobacco producers
Company Country Al Eqbal for Investment Jordan
Alliance One International USA
Altria Group USA
British American Tobacco UK
Ceylon tobacco Sri Lanka
Grupo Carso Mexico
Gudang Garam Indonesia
HM Sampoerna Indonesia
Huabao International Holdings Hong Kong
Imperial Tobacco UK
ITC India
Japan Tobacco Japan
KT&G Corp South Korea
Lorillard USA
Philip Morris USA
Reynolds American USA
Sabanci Holdings (Haci Omer) Turkey
Schweitzer-Mauduit USA
Shanghai Industrial Holdings Hong Kong
Souza Cruz Brazil
Swedish Match Sweden
Universal Corp USA
Vector Group USA
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
24
Coal companies
Company Country Industry Group Aboitiz Power Corp. Philippines Utilities
Adani Power Ltd. India Utilities
Adaro Energy Tbk Indonesia Coal and other fuels
AES Gener SA Chile Utilities
AGL Energy Ltd. Australia Utilities
Allete Inc. USA Utilities
Alliant Energy USA Utilities
Ameren Corp. USA Utilities
American Electric Power Co., Inc. USA Utilities
Appalachian Power Co. USA Utilities
Banpu Public Comp. Ltd. Thailand Coal and other fuels
Capital Power Corp. Canada Utilities
CESC Ltd. India Utilities
China Coal Energy Comp., Ltd. China Coal and other fuels
China Power International Development China Utilities
China Resources Power Holdings Comp. Ltd. China Utilities
China Shenhua Energy Comp. China Coal and other fuels
Cleco Corporate Holdings LLC USA Utilities
CLP Holdings Ltd. Hong Kong Utilities
Coal India Ltd. India Coal and other fuels
CONSOL Energy, Inc. USA Coal and other fuels
Datang International Power Generation Comp., Ltd. China Utilities
DMCI Holdings, Inc. Philippines Capital goods
Drax Group PLC UK Utilities
DTE Energy Co. USA Utilities
Dynegy Inc. USA Utilities
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
25
E-CL SA Chile Utilities
Electric Power Development Japan Utilities
Electricity Generating PCL Thailand Utilities
Emera Inc., including bonds issued by Emera US Finance LP Canada Utilities
Exxaro Resources Ltd. South Africa Coal and other fuels
FirstEnergy Corp. USA Utilities
Glow Energy Public Co. Thailand Independent power producers and energy traders
Gujarat Mineral Development Corp. Ltd. India Coal and other fuels
HK Electric Investments Ltd. Hong Kong Utilities
Hokkaido Electric Power Co. Inc. Japan Utilities
Hokuriku Electric Power Comp. Japan Utilities
Huadian Power International China Utilities
Huaneng Power International Inc. China Utilities
IDACORP Inc. USA Utilities
Indiana Michigan Power Co. USA Utilities
Indo Tambangraya Megah Tbk PT Indonesia Coal and other fuels
Inner Mongolia Yitai Coal Co., Ltd. China Coal and other fuels
Jastrzebska Spólka Weglowa SA Polen Steel
Korea Electric Power South Korea Utilities
Lubelski Wegiel Bogdanka SA Poland Coal and other fuels
MGE Energy Inc. USA Utilities
New Hope Corp. Ltd. Australia Coal and other fuels
Northern States Power Co. MN USA Utilities
NRG Energy, Inc. USA Independent power producers and energy traders
NTPC Ltd. India Utilities
OGE Energy Corp. USA Utilities
Okinawa Electric Power Co. Inc./The Japan Utilities
Peabody Energy Corp. USA Coal and other fuels
Pinnacle West Capital USA Utilities
PNM Resources Inc. USA Utilities
Public Power Corp. SA Greece Utilities
KLP list Companies excluded as of December 1st, 2016
* The company is excluded for more than one reason.
26
Public Service Co. of Colorado USA Utilities
Public Service Co. of New Mexico USA Utilities
Reliance Infrastructure India Utilities
Reliance Power Ltd. India Utilities
Shikoku Electric Power Japan Utilities
Shougang Fushan Resources Group Ltd. Hong Kong Steel production
Southwestern Public Service Co. USA Utilities
Tambang Batubara Bukit Asam Tbk PT Indonesia Coal and other fuels
Tata Power Co., Ltd. India Utilities
Teco Energy Inc., including bonds issued by Teco Finance USA Utillities
The Southern Company USA Utilities
TransAlta Corp. Canada Utilities
Union Electric Co. (d/b/a/ Ameren Missouri) USA Utilities
WEC Energy Group USA Utilities
Westar Energy, Inc. USA Utilities
Whitehaven Coal Ltd. Australia Coal and other fuels
Wisconsin Electric Power Co. USA Utilities
Xcel Energy USA Utilities
Yanzhou Coal Mining Comp. Ltd. China Coal and other fuels