Exclusion of Companies and Countries

Our policy for responsible investments is based on international standards and principles. Based on these, specific companies and countries can be excluded from our investment universe. On this page, you can see our current exclusion lists.

Exclusion is the last resort

Although we generally believe in active ownership and dialogue, it is sometimes necessary to exclude companies and countries from our investment universe.

Excluded companies

Based on international conventions and guidelines, we have as part of our policy for responsible investments and active ownership defined some activities that we do not want to invest in. Companies that contribute to such activities are excluded from PFA’s investment universe. This might be companies that contribute to the production of controversial weapons such as cluster munitions, anti-personnel mines and nuclear weapons.

We also exclude companies that systematically and regularly violate PFA’s standards and fail to respond positively to dialogue.  

Exclusion is reconsidered when proof is provided that the causes of the exclusion no longer exist and that the company or country in question has improved its behaviour. 

Learn more about our policy and guidelines for responsible investments here

Most recent exclusions 

State Oil Co. of the Azerbaijan Republic and Petroleos de Venezuela SA have both been removed from PFA’s investment universe. At the same time, Raytheon Co. was removed, since the company has been acquired by Raytheon Technologies Corp, which is excluded because it is involved in the production of nuclear weapons.

Most recent suspension of exclusion 

According to our external data supplier, Sustainalytics, Incitec Pivot is no longer involved in import of phosphate from Western Sahara. PFA has therefore removed the company from the exclusion list. 

  

Complete overview of excluded companies

PFA maintains an exclusion list of companies and countries that do not act in accordance with our guidelines for responsible investments. This means that any company that violates PFA’s guidelines and does not respond to a dialogue about changing or correcting the offending actions are excluded. We also exclude companies that produce certain types of controversial weapons and weapons banned by international conventions. In addition, countries are excluded if they have international trade sanctions imposed on them or if PFA’s RI Board has done an analysis and assessed that the country is not suitable for investment.

Complete overview of exclusion list

company country industry Reason for exclusion
Human rights
Elbit Systems  Israel Electronics Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
Energy Transfer Equity  USA  Energy  Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
Energy Transfer Partners  USA  Energy  Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
HeidelbergCement Germany Materials Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
Petroleos de Venezuela SA Venezuela Energy Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
State Oil Co. Of the Azerbaijan Republic Azerbaijan Energy Breach of fundamental human rights which, among other things, are in violation of UN Global Compact principles 1 and 2
Labour rights
Wal Mart USA Retail Breach of fundamental labour rights which, among other things, are in violation of UN Global Compact principles 3 and 4
Climate and environment
Canadian Natural Resources Ltd Canada Energy Is mostly engaged in shale oil activities, which are particularly polluting
Cenovus Energy Inc  Canada Energy Is mostly engaged in shale oil activities, which are particularly polluting
Husky Energy Inc Canada Energy Is mostly engaged in shale oil activities, which are particularly polluting
Imperial Oil Ltd Canada Energy Is mostly engaged in shale oil activities, which are particularly polluting
MEG Energy Corp Canada Energy Is mostly engaged in shale oil activities, which are particularly polluting
Suncor Energy Inc Canada  Energy Is mostly engaged in shale oil activities, which are particularly polluting
Cluster bombs, anti-personnel landmines and nuclear weapons
Aerojet Rocketdyne Holdings USA  Defence Involved in the production of nuclear weapons and cluster bombs
Airbus Group France  Defence Involved in the production of nuclear weapons 
Anhui GreatWall Military Industry Co., Ltd.  China  Defence Involved in the production of cluster bombs
Aselsan Elektronik Sanayi ve Ticaret Anonim Sirketi  Turkey Defence Involved in the production of cluster bombs
Babcock International Group PLC  The United Kingdom  Defence   Involved in the production of nuclear weapons 
BAE Systems plc The United Kingdom
Defence Involved in the production of nuclear weapons
Bharat Electronics  India  Defence   Involved in the production of nuclear weapons 
Boeing Co. USA  Defence Involved in the production of nuclear weapons
BWX Technologies, Inc.  USA  Defence   Involved in the production of nuclear weapons 
China Shipbuilding Industry Company Limited  China  Defence Involved in the production of nuclear weapons 
Constructions Industrielles de la Mediterranee Societe Anonyme  France  Defence Involved in the production of nuclear weapons  
Dassault Aviation S.A.  France  Defence Involved in the production of nuclear weapons  
Ducommun Inc  USA  Defence Involved in the production of nuclear weapons  
Elbit Systems Ltd.  Israel  Defence Involved in the production of controversial weapons 
Flour Corp.  USA Defence Involved in the production of nuclear weapons 
General Dynamics  USA  Defence Involved in the production of nuclear weapons and cluster bombs
Hanwha Corp  South Korea Defence Involved in the production of cluster bombs
Honeywell International Inc.  USA  Defence Involved in the production of nuclear weapons 
Huntington Ingalls Industries  USA  Defence   Involved in the production of nuclear weapons 
Jacobs Engineering  The United Kingdom  Defence   Involved in the production of nuclear weapons 
Larsen & Toubro  India  Defence Involved in the production of nuclear weapons 
Leonardo SPA Italy Defence Involved in the production of nuclear weapons
LIG Nex1 Co Ltd  South Korea  Defence Involved in the production of cluster bombs
Lockheed Martin USA  Defence Involved in the production of nuclear weapons and cluster bombs
Northrop Grumman Corp. USA  Defence Involved in the production of nuclear weapons
Poongsan Corp South Korea  Defence Involved in the production of cluster bombs
Poongsan Holding Corp South Korea  Defence Involved in the production of cluster bombs
Raytheon Technologies Corp USA  Defence Involved in the production of nuclear weapons 
S&T Dynamics Co. Ltd.  South Korea  Defence Involved in the production of anti-personnel mines
S&T Holdings Co. Ltd.   South Korea  Defence   Involved in the production of anti-personnel mines
Safran Group France  Defence Involved in the production of nuclear weapons 
Serco Group The United Kingdom  Defence Involved in the production of nuclear weapons 
Textron USA USA  Defence Involved in the production of cluster bombs
Thales  France  Defence   Involved in the production of nuclear weapons 
The Tata Power Company Limited  India  Defence   Involved in the production of nuclear weapons  
Walchandnagar Industries Ltd.  India Defence Involved in the production of nuclear weapons  

 

Excluded countries

PFA excludes countries that are either subject to international sanctions or which PFA has assessed as being inappropriate to invest in. The list below only concerns the latter, i.e. countries that PFA has on its own accord decided not to invest in, and therefore it does not include countries such as North Korea, Syria and Iran, which cannot be invested in due to international sanctions, and countries that do not have government bonds or a market for government bonds.

Currently, the following countries are excluded:

  • Belarus
  • The Republic of Congo
  • Rwanda
We evaluate the exclusion list at least every six months, but in practice, we typically do it more often.

 

Read more about our approach to working with responsible investments