Nordic fund KLP excludes 16 companies over links with occupied West Bank
05/07/2021 05:00
* Motorola Solutions, Alstom among those excluded
* Others span banking, telecoms, construction
* Firms risk helping Israel break international law - KLP
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.
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 .
Telecoms company Altice, which was listed until January
2021, was also excluded.
($1 = 8.6460 Norwegian crowns)
(Reporting by Gwladys Fouche in Oslo and Simon Jessop in
London, editing by Louise Heavens)
((gwladys.fouche@tr.com; +47 21 04 05 53; Reuters Messaging:
Twitter handle: @gfouche))