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Norway’s KLP shuns GM and Marriot

NORWAY – Norwegian asset manager KLP has rejected carmaker General Motors and hotels group Marriot from its investment universe.

KLP introduced a minimum ethical standard to all financial investments at the beginning of this year – which lead to the exclusion of 26 companies.

Now it has updated its list, saying that six of the firms that were excluded in January are back in the investment universe as a result of reported improvements.

KLP, which manages 110 billion Norwegian crowns (15 billion euros) in assets, says it excludes firms based on United Nations reports and “the associations of companies to infringements on human rights, labour rights and environmental conventions”.

Research firm CaringCompany-Etikanalytikerna carries out the analysis. “Dialogue with excluded companies is a key part of the work,” KLP says.

It said GM was excluded “based on reports about systematic discrimination of women at factory in the export processing zones in Mexico for example demands for negative pregnancy test in order to obtain and keep employment”.

Marriott was out because of reported sexual exploitation of minors at hotel in Costa Rica, KLP said.

Sporting goods manufacturer Nike and mining firm Sumitomo Metal, which were excluded in January, are now both back on KLP’s approved list due to reported improvements.

The companies excluded from KLP's investments as of June 1:

Ansell
Chevron Texaco
Coca Cola
Du Pont
General Motors
Goodyear
Johnson Controls
Marriott
Matsushita Electric
Nestle
Omron
Rio Tinto
Sanyo
Sears
Siemens
Singapore Technologies
Thomson Multimedia
Total
Tyco
Unilever
Unocal
Wal-Mart


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