Long-term commitment pays off
Since 2002 Första AP-fonden has taken part in a number of successful dialogues with multinational corporations that have changed their routines and policies in response to pressure from the Fund.
In 2006, seven companies took the necessary action during the year. In most of these cases the Fund’s efforts to influence the companies had been underway for several years, sometimes together with other asset managers and sometimes parallel to other investment initiatives.
Dialogues that led to necessary action by companies in 2006 |
| Company |
Industry |
Incident |
Motivation |
| Marriott |
Hotel |
Sexual exploitation of minors (Costa Rica) |
New human rights policy adopted and implementation started. Has taken a leading role in an industry initiative to combat child sex tourism. |
| BASF |
Chemicals |
Violation of federal pesticide laws (USA) |
The hazardous activities have been terminated. BASF has also sold the subsidiary that previously manufactured this substance. |
| Du Pont de Neumours |
Chemicals |
Hazards to crops and human health (USA) |
Agreement with the authorities to limit use of the substance. New principles for analysis of new substances and greater transparency in reporting. |
| Kerr-McGee |
Oil exploitation |
Oil prospecting contracts with occupied state (West Sahara occupied by Morocco) |
Withdrawing from the area. |
| Pioneer Natural Resources |
Oil exploitation |
Oil prospecting contracts with occupied state (West Sahara occupied by Morocco) |
Withdrawing from the area. |
| Occidental Petroleum |
Oil exploitation |
Massacre of civilians (Colombia) |
New human rights policy. Extensive training programs. |
| Repsol-YPF |
Oil exploitation |
Inadequate methods used in construction of pipeline (Ecuador) |
Problems corrected. Entire project certified according to ISO 14001. |
Active commitment leads to results
In one case, Marriot, Första AP-fonden was the institution responsible for initiating talks and persuading the company to adopt a new human rights policy. Read more about this case by clicking on the related link at right.