Kommunal Landspensjonskasse (KLP) is excluding four companies for the risk of gross corruption, risk of violation on labour rights and for coal based activities.

The companies JBS SA and Luthai Textile have been excluded from the Norwegian fund’s investment universe for risks on corruption and labour rights violation. Tri-State Generation and Transmission Association and PacifiCorp were excluded based on the criteria for coal based activities.

These companies were excluded by Norges Bank in July following advice from the Council on Ethics and after a review KLP has found no reason to deviate from the recommendations, the scheme said in a statement.

KLP has so far excluded 187 companies for violating its responsible investment guidelines.

JBS SA has been excluded as a result of a corruption case where the company and leading employees and members of the board allegedly bribed 1,800 Brazilian politicians, including 200 members of parliament, several district governors and a number of former presidents. The Council on Ethics estimate the total bribes at around €157bn over 10 to 15 years.

Luthai Textile is excluded based on serious and systematic violations to labour rights. The Council on Ethics uncovered violations in Cambodia and Myanmar factories such as using under-18s under the same terms as adults, numerous occupational health and safety hazards and restrictions on freedom of association.

Both Tri-State Generation and Transmission Association and PacifiCorp were excluded as a result of Norges Bank’s decision based on the criteria for coal.

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