Image Credits : adaniports.com
On Tuesday, KLP disclosed that the Norwegian pension fund KLP is divesting from the Adani ports and Special Economic Zone Limited (APSE.NS) citing the company’s connection with the Myanmar military breach the funds responsible investment policy.
India’s one of the largest port operator, Adani Ports have been under scanner from international investors on its projects to develop a container terminal in the city of Yangon on the land leased from a Myanmar military-owned conglomerate.
KLP informed to Reuters, in a statement that the Adani’s operations in Myanmar along with its business association with the country’s armed forces puts an unacceptable risk of contributing to the violation of the KLP’s guidelines for responsible investment.
On Feb 1, a military coup took place in Myanmar and was followed by massive mass protests that led to uncalled circumstances as it took away hundreds of lives and have pulled out international condemnation and sanction on several military figures along with military-controlled entities.
The above statement further elaborated that KLP, Norway’s largest pension fund had an investment that estimates around nine million crowns ($1.05 million) in Adani Ports at the time of its settlements.
The major reason behind divesting is the construction of the container terminal being established on the land posed by the Myanmar military. Furthermore, it claimed that there is an ‘imminent danger’ as the armed forces can utilize the port to import weapons and equipment or as a naval base. KLP commented, “In this way, the port could be used by the army to continue its violations of human rights.
On the other hand Adani explained that it condemned the violence that took place in Myanmar and the violations of the fundamental rights of its people. It further stated that at that time the deal came to an end in the year 2019 and also clarified that its counterparties were entities of the democratically elected government.
It emphasized that it could leave the project and write down the investment if it is found to be in violation of sanctions imposed by the United States. It added, “The write down will not materially affect the balance sheet as it is equivalent to about 1.3 per cent of the total assets.”
KLP affirmed that since March of the ongoing year, they have been in talks with Adani Ports and have organized a meeting with the company’s management in the month of April. It also mentioned that Adani told to KLP that it takes human rights seriously and that it has human rights policy too. KLP further asserted that Adani said it had made no due diligence assessments regarding human rights before the agreement it concluded with the Myanmar military. However, as yet Adani did not voice any comments regarding the KLP’s statements.
A spokesperson for Justice for Myanmar, Yadanar Maung sated, “We call on other pension funds to follow suits and divest from Adani Ports and other business partners of the Myanmar Military.”