Norwegian Pension Fund Dumps Shares In 14 Companies For Likely Arms Production Involvement

Norwegian pension fund KLP, one of the world's largest with around $ 1.4 trillion in assets, divested shares in 14 companies from its investment portfolio because of their possible involvement in the production of lethal weapons like nuclear arms and cluster munitions, Kiran Aziz, the head of the Department of Responsible Investments in KLP Kapitalforvaltning, said on Thursday

MOSCOW (UrduPoint News / Sputnik - 04th November, 2021) Norwegian pension fund KLP, one of the world's largest with around $ 1.4 trillion in assets, divested shares in 14 companies from its investment portfolio because of their possible involvement in the production of lethal weapons like nuclear arms and cluster munitions, Kiran Aziz, the head of the Department of Responsible Investments in KLP Kapitalforvaltning, said on Thursday.

"The exclusion mainly applies to companies that directly or indirectly contribute to the maintenance of the existence of nuclear weapons," Aziz said.

Among companies affected are Leonardo SpA, Rolls Royce Holdings PLC and China Shipbuilding Industry Co and the total value of assets sold off by the KLP is estimated at over $141 million.

"Companies do not necessarily have to produce weapon components themselves, but it may be enough for them to contribute in other ways - for example, through key support services (to be excluded)," Aziz clarified.

KLP, known for its investment rules, traditionally excludes companies that produce "key components" for controversial types of weapons. Recently, there have been changes in this area, which served as the basis for KLP to conduct a new review of its practice and its portfolios. In summer, KLP expelled 22 companies for involvement in the controversial weapons.