Nordic fund KLP excludes 16 companies over links to Israeli settlements in West Bank (updated)
05/07/2021 10:49
* Motorola Solutions, Alstom among those excluded
* Others span banking, telecoms, construction
* Firms risk helping Israel break international law - KLP
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By Gwladys Fouche and Simon Jessop
OSLO, July 5 (Reuters) - Norway's largest pension fund KLP
said on Monday it would no longer invest in 16 companies
including Alstom ALSO.PA and Motorola MSI.N because of their
links to Israeli settlements in the West Bank.
Along with a number of other countries, Norway considers the
settlements a breach of international law. A 2020 United Nations
report said it had found 112 companies that have operations
linked to the region, home to around 650,000 Israelis.
The companies, which span telecoms, banking, energy and
construction, all help facilitate Israel's presence and
therefore risk being complicit in breaches of international law,
and against KLP's ethical guidelines, it said in a statement.
"In KLP's assessment, there is an unacceptable risk that the
excluded companies are contributing to the abuse of human rights
in situations of war and conflict through their links with the
Israeli settlements in the occupied West Bank," KLP said.
The move by KLP follows a decision by Norway's sovereign
wealth fund in May to exclude two companies linked to
construction and real estate in the Palestinian
territories. urn:newsml:reuters.com:*:nL2N2NK14C
KLP said it had sold shares in the companies worth 275
million Norwegian crowns ($31.81 million) and as of June had
completed the process. In Motorola and Alstom, it had also sold
its bond holdings.
Selling Motorola Solutions was "a very straightforward
decision" as its video security and software was used in border
surveillance.
Motorola and Alstom did not immediately reply to requests
for comment.
A senior member of the Palestine Liberation Organization
(PLO) welcomed KLP's move.
"The Norwegian step is significant to stop dealing with
companies that support settlements on Palestinian land. We
welcome it, and we urge other countries to take similar steps,"
Wasel Abu Youssef told Reuters.
"After the United Nations announced its blacklist of
companies that operate in settlements, all countries must either
suspend the work of these companies or boycott them."
Telecoms companies including Bezeq BEZQ.TA and Cellcom
Israel CEL.TA were removed as the services they provide help
make the settlements more attractive residential areas, KLP
said, while banks including Leumi LUMI.TA helped finance the
infrastructure.
In a similar vein, construction and engineering groups such
as Alstom and local peers Ashtrom ASHG.TA and Electra
ELTR.TA were responsible for building the infrastructure,
while Paz Oil PZOL.TA helped power them.
The other companies to be excluded were: Bank Hapoalim
POLI.TA , Israel Discount Bank DSCT.TA , Mizrahi Tefahot Bank
MZTF.TA , Delek Group DLEKG.TA , Energix Renewable Energies
ENRG.TA , First International Bank of Israel FIBI.TA and
Partner Communications PTNR.TA .
Mizrahi Tefahot Bank and Partner Communications declined to
comment. The other companies did not immediately reply to
requests for comment.
Telecoms company Altice, which was listed until January
2021, was also excluded.
Altice did not immediately reply to a request for comment.
($1 = 8.6460 Norwegian crowns)
(Reporting by Gwladys Fouche in Oslo and Simon Jessop in
London, Steven Scheer and Maayan Lubell in Jerusalem and Ali
Sawafta in Ramallah, editing by Louise Heavens)
((gwladys.fouche@tr.com; +47 21 04 05 53; Reuters Messaging:
Twitter handle: @gfouche))