SWITZERLAND - The Swiss Foundation for Sustainable Development, Ethos, has excluded newly listed commodities company Glencore International from its funds for an alleged breach of environmental and social standards and a lack of communication.
In May, Switzerland-based Glencore, an international player in the commodities sector, was listed on the London Stock Exchange, becoming a constituent of the FTSE 100 index valued at around $61bn (€42bn).
Following the listing, Ethos looked into the company as a possible investment.
In a recent report, however, the foundation had decided against Glencore's inclusion, highlighting risks for investors due to "environmental damages" and "social malpractice".
It also said Glencore lacked a "willingness to learn" and criticised the company for being "unwilling to inform about problems" or "answer questions to Ethos's satisfaction".
The sustainable development foundation - founded by Pensionskassen - also cited criticism raised against Glencore subsidiaries around the globe, but particularly those in Africa, which allegedly employ child labour, disregard workers' rights, cause environmental damage and undermine economic development by "transferring profits to tax havens".
Ethos said: "Information on how the company is rising up to environmental and social challenges is very scarce.
"In particular, the question of how the negative impacts of business done by the company can be softened remains unanswered."