Norwegian Pension Fund Boycotts Dakota Access Pipeline Companies
Kommunal Landspensjonskasse (KLP), a $70.5 billion Norwegian pension fund, is divesting a combined $68.4 million from Phillips 66, Enbridge, Marathon Petroleum, and Energy Transfer Partners, calling the companies’ involvement with the Dakota Access Pipeline (DAPL) “an unacceptable risk of contributing to serious or systematic human rights violations.”
The nearly 1,200-mile long pipeline was built to transport oil through North Dakota, South Dakota, Iowa, and Illinois. It has drawn heavy opposition over a potential risk of water contamination at the Lake Oahe pipeline crossing, as well as issues concerning Native American tribal sovereignty.
“This has been a difficult case,” Annie Bersagel, acting head of responsible investments at KLP Kapitalforvaltning, said in a statement. “In making the decision to divest, KLP places significant emphasis on the UN Special Rapporteur’s assessment, a previous recommendation on exclusion from the Council on Ethics for the Government Pension Fund Global, as well as the lack of progress through active ownership.”
KLP had equity and fixed income investments of approximately $22.5 million in refining and logistics company Phillips 66, which owns 25% of the pipeline, and $32.3 million in Canadian energy infrastructure firm Enbridge Inc., which owns a 27.6% stake.
KLP had investments of approximately $7 million in Marathon Petroleum Corporation, a refiner, retailer, and distributor of oil and gas products. Marathon Petroleum has a 9.2% stake in the pipeline.
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