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Reuters
23-05-2025
- Business
- Reuters
UN expert asks TotalEnergies to act on human rights concerns
PARIS/LONDON, May 23 (Reuters) - TotalEnergies ( opens new tab must urgently address fresh allegations of abuses at its contentious oil pipeline project in East Africa, an independent U.N. human rights expert said ahead of the French energy firm's annual shareholder meeting on Friday. In a statement, opens new tab released late on Thursday, Special Rapporteur on environmental defenders Michel Forst said the company must take immediate action to protect activists linked to the East African Crude Oil Pipeline and connected oilfields. It followed news that German asset manager Union Investment had dropped the company's bonds and shares from its sustainable investment funds over the issue. Union Investment said it made the decision after reviewing a fresh report from non-profit Just Finance International citing alleged abuses at the Kingfisher oil site in Uganda, part of the pipeline project. Forst said TotalEnergies had "failed to take effective steps addressing these abuses," adding it was "deeply troubling" that "it has instead consistently rejected the allegations as mere 'misconceptions' of the projects' impact". As a French company, it was bound by the international Aarhus Convention to ensure individuals were not penalised or harassed for their opposition to the projects, Forst added. TotalEnergies said in a statement on Friday that it "does not tolerate any threats or violence against those who peacefully defend and promote human rights" and reminds those it works with of its position on the subject. The company added that it worked with Ugandan authorities "to stress to the Police the need to ensure that due process is followed, the protesters are treated well, and their rights are respected while in detention". The security team of its local unit also monitors the wellbeing of anyone arrested and ensures their representatives are able to visit them, it said. Forst backed a call by Union Investment for an independent investigation into the alleged abuses. As well as making the results public and acting on any shortcomings, he also asked the Total to use its leverage to prevent any further attacks.
Reuters
22-05-2025
- Business
- Reuters
Union Investment cuts TotalEnergies stake over East African project allegations
LONDON/PARIS, May 22 (Reuters) - Germany's Union Investment has dropped French oil major TotalEnergies ( opens new tab from its sustainability funds and called for an independent human rights audit following fresh allegations of abuses at a $15 billion project in East Africa. The move by Union, a top-20 investor according to LSEG data, comes ahead of TotalEnergies' annual shareholder meeting on Friday and could potentially undermine its standing among investors focused on environmental, social and governance issues. TotalEnergies denied the allegations made by non-profit Just Finance International (JFI) concerning the Kingfisher oil site in Uganda, part of the East African Crude Oil Pipeline (EACOP) project in which Total has a 62% stake. A spokesperson for the oil major added it was in talks with Union Investment about its African projects. Union declined to confirm the scale of its divestment. Data from industry tracker Morningstar Direct showed Union held around 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, and still holds a stake of around 900 million euros ($1 billion) across other funds. While rival oil majors such as BP (BP.L), opens new tab, Shell (SHEL.L), opens new tab and Equinor ( opens new tab have walked back promises to invest in wind and solar, Total has continued to add renewables, winning support from those keen to play the sector's transition to a lower-carbon economy. The company, however, has faced criticism from human rights and environmental activists over the impacts of East African pipeline and Mozambique LNG projects. JFI said it found evidence of alleged forced evictions, violence against women, beatings and extortion by Ugandan security forces at the Kingfisher oil site in late 2024. JFI's report, opens new tab, released in May, was based on interviews with more than 40 people living and working in the area over the course of two years. Union decided to drop Total from its sustainable funds after reviewing a draft of the report and engaging with JFI over its findings, said Chief Sustainability Officer Henrik Pontzen. "This decision takes into account our assessment of TotalEnergies' approach to addressing serious controversies related to Mozambique and the EACOP project," he said. The TotalEnergies spokesperson cited the company's June 2024 response to a previous JFI report that, after investigating, "the highlighted concerns do not appear to be related to the Kingfisher project operations". Kingfisher is majority-owned by TotalEnergies, which has an about 57% stake, but is operated by partner China National Offshore Oil Corporation which owns 28%. Uganda's national oil company owns 15%. CNOOC, Uganda's national oil company and the Ugandan government did not respond to requests for comment. TotalEnergies is the subject of a criminal complaint and investigation in France that it failed to assist workers at its LNG project in Mozambique fleeing a 2021 jihadist attack. It denies any wrongdoing and hopes to resume building the LNG project this summer. Pontzen said Union, which manages 500 billion euros in assets, had asked the company to commission an "independent international audit" into the controversies and wanted improved transparency and accountability. TotalEnergies said a report it commissioned on EACOP last year would be completed in 2025. ($1 = 0.8853 euros)
