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Tuesday, April 22, 2014
Total’s operations in Western Sahara are coming under scrutiny from Norway’s sovereign wealth fund. The Norwegian fund is trying to ascertain if the French company’s activities there are unethical. It currently holds a 2.06% stake in Total, worth about $3 billion. If it determines Total’s operations to be unethical it could divest from the stock.
“We are following the work of Total in Western Sahara closely,” said Ola Mestad, a law professor who heads the fund.
Total told Reuters its “operations offshore in Western Sahara, as in other places where we operate, are in line with the applicable international laws and standards mentioned in our Code of Conduct, in particular those related to human rights.”
At the end of 2013 Total signed a joint declaration with Morocco’s National Bureau of Petroleum and Mines in which the latter emphasizes its commitment to complying with the principles of the Charter of the United Nations. Total also signed a MoU setting out corporate social responsibility principles for the reconnaissance period and any subsequent phases.
The question of Western Sahara’s sovereignty has been before the UN for a number of years with no resolution. Morocco claims to have dominion over the territory while the Sahrawi people want independent rule. Morocco annexed the region in 1975 after Spain withdrew and a war with separatists ensued. A UN-brokered ceasefire was reached in 1991 on the understanding that a referendum would be held on the region’s fate, this has yet to take place.
Mestad says the main issue with the region is ensuring that the interests of the local population are protected. He went on to say that investors should be more aware of human rights issues when investing in a company, both for ethical reasons and because it can pose a risk to their investments
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