(June 17, 2013) — Norway’s local government pension fund KLP has decided to bring BAE Systems back into its investment universe following an exclusion lasting more than six years.
BAE Systems was originally excluded from KLP’s investment in January 2006, but the fund has decided to reinvest in the company after BAE dropped its association with the production of nuclear weapons.
Two other companies were also reintroduced into KLP’s investment portfolio for June 2013; tyre and rubber manufacturer Bridgestone and US chemical company FMC Corporation.
Bridgestone Corporation was foreclosed in December 2006 because of concerns over child labour in a rubber plantation in Liberia, which is owned and run by Firestone, Bridgestone’s wholly owned subsidiary.
Bridgestone has since cleared up the problems of child labour, the pension fund said, and been re-included in KLP’s investment universe.
FMC Corporation was excluded in June 2010 on the basis of reports of its imports of phosphate from Western Sahara.
Western Sahara is currently occupied by neighbouring Morocco. Campaign groups, such as the Western Sahara Resource Watch, are calling on international companies to not do business with Moroccan companies or authorities in occupied territories, as it makes the occupation seem politically legitimate.
FMC Corporation has now closed the business that bought phosphate and no longer buys phosphate from Western Sahara.
FMC wasn’t the only company to feel KLP’s wrath over Western Sahara issues; last week aiCIO reported KLP had dropped French oil company Total due to its involvement in the region.
Two tobacco companies, Huabao International Holdings and Schweitzer-Mauduit International, have also been excluded by KLP as of June 2013.
KLP has so far excluded 64 companies from its investments for ethical violations. Six companies were dropped for human rights violations, three more were banned for failing to uphold individual rights in war and conflict, and six more were prohibited for going against “other basic ethical norms”.
In addition, two companies have been dropped from the investment list for problems with labour rights, and 10 more as a result of serious environmental offenses. Another 19 companies were held outside the investment universe for their links to weapons production, and 20 more companies because they produce tobacco.
Related News: Norway in Three-Way Fight for London Complex Share and Norway Retains its Sovereign Wealth Crown