KLP excludes Adani Ports
25 June 2021
The Norwegian pension company KLP excludes Adani Ports and Special Economic Zone Limited on the basis of the company’s connection to Myanmar’s military breach of the fund’s responsible investment policy.
Careful withdrawals have been made on the grounds that Adani’s activities in Myanmar and its business partnership with the country’s military constitute an unacceptable risk of contributing to a breach of KLP’s guidelines for responsible investment.
This is the first time that KLP has carried out a prudential investment that is a new criterion in the guidelines for responsible investments.
Adani Ports, India’s largest port operator, has been scrutinized by international investors for its project to build a container port in the city of Yangon on land leased from a military-owned conglomerate in Myanmar.
A military coup in Myanmar on February 1 and a subsequent attack on mass protests in which hundreds have been killed have led to international condemnation and sanctions against military personnel and military-controlled units.
– Adani’s operations in Myanmar and its business partnership with the country’s armed forces pose an unacceptable risk of contributing to breaches of KLP’s guidelines for responsible investment, says Kiran Aziz, senior analyst at KLP Kapitalforvaltning.
KLP, Norway’s largest pension fund, had an investment worth NOK 9 million ($ 1.05 million) in Adani Ports at the time of the decision.
The investment was sold because the container port is being built on land owned by the Myanmar military and there is an “imminent danger” that the armed forces could use the port to import weapons and equipment, or as a naval base.
– In this way, the port can be used by the army to continue its violations of human rights, says Kiran Aziz.
Source: KLP
