KLP Excludes 16 Companies Linked to Israeli Settlements
The Norwegian Government Pension Fund Global (KLP) has updated its exclusion list, banning 16 companies that have ties to Israeli settlements in the West Bank. This decision comes after a thorough review of the companies’ activities and links to the occupied territories.
Guided by International Law and Human Rights Principles
KLP’s investment strategy is guided by international law and human rights principles, which prohibit investments that contribute to violations of these laws. The fund has engaged with the affected companies to discuss their activities and concerns.
Excluded Companies
The excluded companies operate in various sectors, including:
- Construction
- Engineering
- Banking
- Telecommunications
- Oil and gas refining
- Renewable energy
Some well-known names on the list include:
- Alstom SA
- Electra Ltd
- Bank Hapoalim BM
- Energix Renewable Energies
Engagement with Affected Companies
KLP has engaged with the affected companies to discuss their activities and concerns. While some have responded at a general level, only Alstom SA has been willing to meet with KLP representatives.
Alstom SA claims that it does not contribute to violations of international law through its activities in the occupied territory, citing a French court judgment that rejected a suit against the company.
Energix Renewable Energies
In June 2021, Energix Renewable Energies informed KLP that it had withdrawn from its operations in the West Bank. However, during a subsequent meeting with KLP representatives, the company revealed plans for a wind power project on the occupied Golan Heights, which is considered a violation of international law by the UN.
Based on KLP’s due diligence criteria, the risk of human rights violations is deemed too high to consider re-including Energix in its investments. The fund will maintain the exclusion from June 2021.
Ongoing Efforts
The updated list of excluded companies will guide subsequent investment decisions, and any new companies found to have links to Israeli settlements in the West Bank may also be subject to exclusion.
“We are committed to upholding human rights and international law in our investment activities,” said a spokesperson for KLP. “This decision is part of our ongoing efforts to ensure that our investments align with our values and principles.”