Completed dialogues
Completed dialogues
Rio Tinto PFA entered into a dialogue in 2017
Status: Completed
Reason for initiating dialogue
Rio Tinto has used “riverine tailings disposal”, which is harmful to the environment.
Substance of the dialogue
Since 2017, PFA has been in dialogue with the company in order to determine how its mining activities in Indonesia impact the environment. The company has confirmed that they are actively working on monitoring their impact on the local environment and that it has established areas to stimulate a regeneration of nature. PFA confirms that data from Indonesia show that the company’s practices are ‘best practice’ and that alternative methods for the disposal of wastewater would not be better.
For that reason, PFA has concluded its dialogue with the company about its environmental impact in Indonesia.
History of the dialogue and PFA’s assessments
- PFA has been in dialogue with Rio Tinto since 2017
- In that connection, PFA has concluded that the company’s restoration activities are ‘best practice’.
- The dialogue has been concluded.
Chevron PFA entered into a dialogue in September 2017
Status: Completed
Reason for initiating dialogue
A desire for more transparency about Chevron’s lobbying.
Substance of the dialogue
PFA has chosen to support a proposal that the company should publish a report on their lobbying activities, that the chairman of the board of directors should be independent and that it should be possible for shareholders holding more than a 10 per cent of the shares to convene an extraordinary general meeting. PFA has chosen to not support a proposal that the company should prepare a report on their transition towards a “low-CO2 economy” - the reason for this is that the company has already taken steps in that direction by publishing their ‘Managing Climate Change Risk’ report which already deals with this topic and which indicates that there has been a change in attitude since the annual general meeting in 2016.
Freeport-McMoRan PFA entered into a dialogue in 2016
Status: Completed
Substance of the dialogue
Since 2016, PFA has been in dialogue with the company in order to determine how its mining activities in Indonesia impact the environment. The reason for initiating the dialogue was the company’s use of “riverine tailings disposal”. The company has confirmed that they are actively working on monitoring their impact on the local environment and that it has established areas to stimulate a regeneration of nature. PFA’s advisor has confirmed that data from Indonesia indicate that the company’s practices are ‘best practice’ and that alternative methods for the disposal of wastewater would not be better. For that reason, PFA has concluded its dialogue with the company about its environmental impact in Indonesia.
Walmart de Mexico PFA entered into a dialogue in October 2015
Status: Completed
Substance of the dialogue
PFA has excluded Wal-Mart Stores Inc, but not Wal-mart de Mexico (Walmex) which, among other things, operate Walmart stores in Mexico and Central America. PFA has been in dialogue with its advisor in this area, and the dialogue confirmed that Walmex does permit its employees to be members of a labour union. Thus, Walmex is not in violation of PFA’s guidelines - unlike Wal-Mart Stores Inc, which has been excluded.
Sun Hung Kai Properties PFA entered into a dialogue in May 2015
Status: Completed
Substance of the dialogue
PFA’s external asset manager, who has invested in this company, has contacted the company to address potential human rights violations associated with their security contracts in Nauru and Papua New Guinea. The company has stated that they do not plan to extend their contracts. Together with the external asset manager, PFA will continue to monitor the case and how it develops.
GlencoreXstrata PFA entered into a dialogue in October 2014
Status: Completed
Reason for initiating dialogue
- Environmental impacts from their mine in Mount Isa, Australia
- Activities in Western Sahara
Substance of the dialogue
PFA has been in dialogue with the company about the environmental impact of its mine in Mount Isa, Australia. PFA and the company have discussed the progress made in reducing air pollution and how the company works towards minimising the impact on water quality near the mine. PFA has also been in dialogue with the company about its human rights due diligence in Western Sahara. At the end of 2017, the company confirmed that they were no longer active in West Sahara and that the company’s human rights policy now also covers activities in conflict zones. In 2018, PFA sold off the majority of its investment in Glencore.
After the sale, PFA will no longer prioritise the direct dialogue with the company but will instead have the active ownership dialogue managed by the screening and engagement company GES and monitor the company’s progress via GES.
Sygenta PFA entered into a dialogue in December 2014
Status: Completed
Reason for initiating dialogue
In December 2014, PFA was presented with a report and a video about very objectionable issues in Syngenta’s supply chain.
Substance of the dialogue
PFA asked GES to prepare an analysis of the company’s practices, and PFA initiated its own dialogue with the company. PFA was waiting for an investigation by the Fair Labour Association (FLA) concerning Syngenta’s supply chain (“Procurement price and credit practices in Syngenta hybrid seeds supply chain, India”), which was published in July 2015. In 2016, PFA followed up with the company on their work in this area. PFA has found that Syngenta, following recommendations from a multi stakeholder consultation process, has launched two pilot projects in India aimed at ensuring that minimum wages are paid to workers in the company’s supply chain. The projects lasted until autumn of 2017, and PFA will await the results of the pilot projects.
Syngenta has since been acquired by ChemChina, and PFA no longer owns any equity in the company. The dialogue has therefore been closed.
History of the dialogue and PFA’s assessments
- In December 2014, PFA was presented with a report and a video about very objectionable issues in Syngenta’s supply chain.
- In 2016, PFA followed up with the company on their work in this area.
- The dialogue has been completed.
Cement Roadstone Holding PFA entered into a dialogue in 2014
Status: Completed
Reason for initiating dialogue
Possible association with an Israeli company that was possibly involved in activities that violate international conventions on the West Bank.
Substance of the dialogue
Since 2014, PFA has been in dialogue with the company to investigate a number of issues surrounding the company’s association with an Israeli company and its potential involvement in activities that violate international conventions on the occupied West Bank.
In January 2016, the company made it public and confirmed that it has divested itself of its ownership stake in the Israeli company. Therefore, as the association is no longer relevant, PFA’s RI Board has decided to close the dialogue.
Nordea Bank PFA entered into a dialogue in April 2013
Status: Completed
Reason for initiating dialogue
Money laundering case
Substance of the dialogue
PFA has been in dialogue with the company about a money laundering case. Nordea Bank has launched an internal investigation of the transactions, some of which are up to five years old. In the mean time, new measures have been introduced to ensure that similar incidents cannot take place again. PFA assesses that the company has implemented sufficient measures to comply with anti-money laundering laws in the future. As part of its investment approach, PFA has been engaged in an ongoing dialogue with the company.
Adani PFA entered into a dialogue in April 2013
Status: Completed
Reason for initiating dialogue
Potential damage to the environment in Australia
Substance of the dialogue
PFA’s external asset manager has been in dialogue with Adani Ports and Special Economic Zone’s (Adani) management team to address potential environmental damage in Australia and the company’s general approach towards sustainability. Adani has informed PFA that they have not made use of their permit from the Australian government to dump soil near the Great Barrier Reef - instead, Adani has chosen to discard the soil on land. Historically, Adani has generated a lot of turnover from selling coal, but the company now has an objective of reducing the turnover from coal from 50 per cent to 20 per cent. PFA’s asset manager will maintain the dialogue with the company.
Chevron PFA entered into a dialogue in June 2010
Status: Completed
Substance of the dialogue
PFA has followed up on the company’s latest annual general meeting where PFA supported a resolution on the importance of the company reporting on its work on a strategic adaptation of activities to address climate change up until 2035.
Ryanair PFA entered into a dialogue in May 2010
Status: Completed
Reason for initiating dialogue
Labour rights
Substance of the dialogue
PFA’s screening and engagement company, GES (now Sustainalytics) has, on behalf of PFA and other investors, been in dialogue with Ryanair to investigate questions on the company’s practices when it comes to worker rights in the context of the ILO conventions. They have not found clear violations of international conventions when it comes to labour market issues.
PFA has observed, with concern, Ryanair’s approach to running their business, including concerns about labour market issues for their employees and, most recently, the case brought before the Danish Labour Court. The case shows that the company is not sufficiently interested in adapting to local conditions and managing the associated risks. PFA’s RI Board has thus on this basis assessed that PFA should not invest in the company.
Walmart PFA entered into a dialogue in February 2006
Status: Completed
Reason for initiating dialogue
Labour rights and sustainability
Substance of the dialogue
Together with 11 other investors, PFA has contacted the company to initiate a dialogue on labour rights and sustainability. Walmart has been excluded from PFA’s investment universe and the dialogue is therefore closed.
Nestlé PFA entered into a dialogue in July 2006
Status: Completed
Substance of the dialogue
PFA has been in dialogue with the company to discuss their sustainability programme, including how to prevent the use of child labour in their supply chain. PFA has visited Nestlé in the Ivory Coast, where, among other things, Nestlé has implemented a ‘Child Labour Monitoring and Remediation System’ (CLMRS) aimed at identifying child labour and finding solutions to the problem. PFA will maintain the dialogue with Nestlé to follow up on their progress and to discuss the scope of their sustainability programmes.
Chevron PFA entered into a dialogue in May 2003
Status: Completed
Reason for initiating dialogue
The acquisition of Texaco in 2001
Substance of the dialogue
PFA is aware of the environmental risks that Chevron has assumed in Ecuador in connection with their acquisition of Texaco in 2001. In 1995, Texaco was ordered by a court to pay for the costs of fixing the environmental damage they caused in Ecuador. After paying the costs, Texaco’s activities and obligations in Ecuador were taken over by their joint venture partner, Petroecuador. In 2013, a court ordered Chevron to pay compensation for Texaco’s activities, but this lawsuit was subsequently rejected in the United States in 2014 and 2016 due to charges of corruption and bribery during the trial in Ecuador. On the basis of the court ruling from the United States, PFA has decided not to enter into a dialogue with Chevron about Texaco’s former activities in Ecuador unless new information emerges that would make it relevant.