Kommunal Landspensjonkasse (KLP) is Norway’s largest life insurance company. It delivers financial and insurance services to the public sector, businesses associated with the public sector and their employees. KLP has total assets of NOK 553 billion (€59 billion).[i]
The 2014 KLP Guidelines for Responsible Investment state that KLP will exclude investments in “companies that produce weapons whose normal use violates fundamental humanitarian principles”.[ii] KLP guidelines are aligned with the ethical guidelines for the Norwegian Government Pension Fund and KLP follows the recommendations made by the Council on Ethics of the Norwegian Government.[iii] As a result, KLP does not invest in companies that develop, manufacture, maintain, buy or sell weapons that breach fundamental humanitarian principles or key components for these weapons.
KLP applies its exclusion policy only to those activities and components that contribute entirely or primarily to nuclear weapons. Following the reasoning of the Council on Ethics, which states that “dual use is, as a point of departure, not covered by the guidelines”,[iv] KLP does not exclude all companies producing weapon systems or key components that are designed for nuclear tasks, for example, components specifically but not solely designed for launching nuclear missiles from submarines.[v] The policy applies to internal and external asset managers.[vi]
KLP’s exclusion list of 21 June 2016 contains 18 companies with activities related to nuclear weapons:
Aerojet Rocketdyne Holdings; Airbus Group; Babcock & Wilcox; BAE Systems; Boeing; BWX Technologies Inc.; Finmeccanica; Fluor Corp.; General Dynamics; Honeywell International; Huntington Ingalls Industries; Jacobs Engineering; Lockheed Martin; Northrop Grumman; Orbital ATK; Raytheon;
Safran Group, and; Serco Group.[vii] The exclusion list is based on the findings of data provider Global Engagement Services (GES) and on the recommendations of the Council of Ethics of the Norwegian Government Pension Fund.[viii]
We commend KLP for adopting a public policy on nuclear weapons. We recommend KLP apply its policy to all nuclear weapons producing companies including those producing dual-use goods. We look forward to engaging with KLP, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
KLP's policy on nuclear weapons is leaky. Tell them to fix it!Read or edit the petition
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Congratulations KLP. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.
However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because KLP also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.
It would be great if KLP made the following change to make the policy airtight:
• Apply the policy to all nuclear weapons producing companies including those producing dual-use goods.
With kind regards,
[ii] KLP, “Guidelines for responsible investment”, page 2, 4 November 2014, available from: http://english.klp.no/polopoly_fs/1.33317.1459346158!/menu/standard/file/KLP%20guidelines%20for%20responsible%20investment%20-.pdf, viewed 13 October 2016.
[iii] KLP, “Exclusion and dialogue”, website KLP (http://english.klp.no/about-klp/corporate-responsibility/exclusion-and-dialogue#tab7-8022), viewed 13 October 2016; KLP, written response to Profundo dated 30 May 2014.
[v] Government Pension Fund Global, written response to PAX, 11 May 2015; Etikradet, “Recommendation of 19 September, 2009, on the exclusion of companies involved in the production of nuclear weapons”, 19 September 2005, p. 3., website Ethical Council (http://etikkradet.no/?p=1313), viewed 13 October 2016; written response to Profundo dated 30 May 2014.
[vi] KLP, written response to Profundo dated 30 May 2014.
[vii] KLP, “KLP list “, pages 16-22, available from: http://english.klp.no/polopoly_fs/1.34185.1466491449!/menu/standard/file/KLP-LISTEN_15%2006%202016_ENGLISH.pdf, viewed 13 October 2016.
[viii] KLP, “KLP-Listen. Selskaper ekskludert per 1. desember 2014”, December 2014, available at http://english.klp.no/polopoly_fs/1.29242.1417534451!/menu/standard/file/KLP-LISTEN_01%2012%202014_NORSK.pdf, viewed 13 October 2015; KLP, “Exclusion and dialogue with companies”, website KLP (http://english.klp.no/about-klp/corporate-responsibility/exclusion-and-dialogue), viewed 13 October 2016; KLP, written response to Profundo dated 30 May 2014.