P + removes problematic companies from the portfolio
11 February 2021
The companies are divested due to significant and persistent problems in complying with international guidelines regarding climate, environment, human and labor rights.
In connection with the most recent screening of the equity portfolio, P + has identified 12 companies with significant challenges, which are now excluded and divested. Kirstine Lund Christiansen, Deputy Director and Head of Responsible Investment at P +, says:
“All companies have major challenges in meeting international guidelines in various ways, and they act in violation of P +’s policy for responsible investment. The extent of the companies’ negative impact on, among other things, climate, the environment, human and labor rights is large and persistent, and we therefore assess that it is hopeless to try to influence the companies through active ownership. That is why we have chosen to put the companies on our exclusion list, and they will be sold as soon as possible.
Systematic and significant negative impact
The majority of P +’s investment in the 12 companies now divested is in the global mining companies Freeport-McMoran Inc and Barrick Gold Corp. Both companies are examples of how a systematic and significant negative impact is contrary to P +’s responsible investment policy. Kirstine Lund Christiansen explains:
Both Freeport-McMoran Inc and Barrick Gold Corp use the ‘Riverine Tailings Disposal’ (RTD) technology for waste management. The technique is banned in most developed countries as it can cause irreparable damage by contaminating natural river systems as well as affecting agriculture, health and wildlife in the local area. Despite fines and irreparable damage to the environment, companies will not commit to changing their emission methods in the future. We therefore assess that the companies’ negative impacts are systematic and significant, and both companies thus fully meet our criteria for exclusion. ”
Source: P+
