KLP excludes four companies and includes two
Written by Sunniva Kolostyak
Norwegian pension fund, KLP, has decided to exclude four companies to cut revenue from coal or coal-based activities and revoke its exclusion of two others.
In a statement, KLP said the four companies Agritrade Resources Limited, Hubei Energy Group Co., Ltd, Shenzhen Energy Group Company Limited and Zhejiang Zheneng Electric Power Co., Ltd were all excluded based on the criteria for coal-based activities.
The companies are not in line with the fund’s criteria, which states that companies should not derive more than 30 per cent of its revenue from the coal industry.
In addition, KLP is following in the footsteps of Norway’s government pension fund and Norges Bank of ending its exclusion of Kosmos Energy Ltd. and Cairn Energy Plc..
Both companies have been excluded from KLP and its funds since December 2016. They were excluded due to their involvement in oil exploration off the coast of Western Sahara, but the activity has now ceased.
KLP asset management advisor responsible investments Marte Siri Storaker said: “It is now confirmed that the companies involvement in oil exploration in the area has ceased.”
“KLP has reviewed Norges Banks decision to include the companies, and find no reason to deviate from the Council of Ethics recommendation. KLP and the KLP Funds have therefore decided to include Kosmos Energy Ltd. and Cairn Energy Plc.”
The fund has previously excluded 189 companies for violation of its guidelines for responsible investment.