NORWAY – Norwegian life insurer Kommunal Landspensjonskasse says its ethical investment requirement “produces results”.

It said: “Active dialogue with both Nomura Securities and Nestlé has helped produce improvements that have led to KLP now choosing to include these companies in the investments again.”

It said Japanese broker Nomura has taken steps to end sexual discrimination, while Nestlé had improved its record on the marketing of baby milk. KLP has been advised by GES Investment Services, which yesterday said it had readmitted both companies to its investment lists.

“Naturally, we cannot tell whether KLP's minimum ethical requirement is the direct cause of these improvements,” KLP said. “We do, however, believe that such a requirement and the active dialogue between the companies and KLP's analysis provider, GES Investment Services, is one of many ways of influencing companies' social responsibility.”

KLP provides funded public pension schemes for municipalities and regional authorities. It KLP pays pensions to about 130,000 pensioners.

Last month KLP said it made a value-adjusted return in the first quarter of 1.9%, while profits almost doubled to 973 million crowns (119.1 million euros). It introduced ethical requirements in 2001.