Norway’s largest pension fund said as of now it was pulling out of 14 companies that “produce controversial weapons”, including aerospace and defense giants General Dynamics, Raytheon Technologies and Rolls Royce .
The decision of the Kommunal Landspensjonskasse (KLP), which holds more than $ 93 billion in assets, mainly targets companies that “produce certain types of weapons which by their nature violate basic humanitarian principles”, notably weapons controversial, as opposed to conventional weapons. The pension fund said this was because controversial weapons could not distinguish between military and civilian targets.
“In practice, the criterion mainly applies to nuclear weapons and cluster munitions, as well as anti-personnel mines,” the pension fund said in a report explaining his decision to divest the companies.
In addition to General Dynamics, Raytheon and Rolls Royce, KLP is also withdrawing from Babcock International, China Shipbuilding Industry, Dassault Aviation, Elbit Systems, KBR, L3Harris Technologies, Larsen & Toubro, Leidos Holdings, Leidos Inc., Leonardo SpA and Thalès.
The fonds noted that the terms “production” and “weapon” broadly encompass any assembly not only of weapons, but also of all relevant components. The term “weapon” also includes systems and platforms intended for use by weapons, as well as components of systems and platforms.
General Dynamics subsidiary General Dynamics Ordnance and Tactical Systems Inc. has been cited for producing armor-piercing munitions using depleted uranium. The fund also noted that the US Navy awarded a contract to sister company General Dynamics Mission Systems to support the US and UK Trident II strategic weapons systems and subsystems, which are ballistic missiles launched by submarines. .
Raytheon was known to be a major developer and supplier of components for aircraft and vehicles capable of transporting nuclear weapons, such as the F-16, F-15 and F-22, as well as for producing rocket launch pads for the F / A. -18 Hornet, which can carry nuclear weapons. The company also supplies electromechanical actuators for a ballistic missile launched by a French submarine that carries six to ten thermonuclear warheads that can be independently targeted.
And Rolls-Royce was excluded for producing components for “a number of ships capable of launching nuclear weapons and which are generally intended for this type of weapon.”
KLP’s move follows an announcement this summer that it was disengaging from 16 companies due to their ties to Israeli West Bank settlements, including telecommunications equipment giant Motorola.
The Norwegian pension giant has made a series of decisions over the past few years in an attempt to get rid of its portfolio of so-called “sin stocks”. In 2019, the fund announced it would exclude companies that derive more than 5% of their revenue from coal and oil sands based activities. That same year, it also said it would divest 90 alcohol and gambling stocks, including brewers Anheuser-Busch and Heineken, and online betting service Gaming Innovation Group.
The pension fund has also pressured agribusiness companies and their investors to stop activities in Brazil that are contributing to the destruction of the Amazon rainforest. The fund has named Archer Daniels Midland, Bunge and Cargill as the companies it is looking to take on on this matter.
Norwegian company KLP lobbies agribusiness and investors to save the Amazon
Tobacco and gun exclusions reduce Norway Fund returns
Norway’s largest pension company splits from 16 West Bank-linked companies
Tags: weapons, Babcock, China Shipbuilding Industry, Dassault Aviation, divest, Elbit Systems, General Dynamics, KBR, KLP, KLP Funds, L3Harris Technologies, Larsen & Toubro, Leidos, Leonardo, Nuclear Weapons, Raytheon, Rolls Royce, Thales, weapons