GERMAN GIANT DUMPS TOTALENERGIES OVER UGANDA HUMAN RIGHTS HORROR
Germany’s Union Investment has made a dramatic move, slashing its TotalEnergies holdings from sustainability funds and demanding an independent human rights audit after explosive new allegations emerged about the French oil major’s $15 billion East African project.
The bombshell decision by Union, ranked among the top-20 investors globally, comes just ahead of TotalEnergies’ annual shareholder meeting on Friday and threatens to severely damage the company’s reputation among ESG-focused investors.
At the center of the controversy is the Kingfisher oil site in Uganda, part of the massive East African Crude Oil Pipeline (EACOP) project where Total holds a commanding 62 percent stake. Non-profit watchdog Just Finance International has leveled devastating accusations against the project, citing evidence of forced evictions, violence against women, brutal beatings, and systematic extortion by Ugandan security forces in late 2024.
The shocking findings, based on extensive interviews with over 40 local residents and workers conducted over two years, prompted Union’s Chief Sustainability Officer Henrik Pontzen to take unprecedented action. “This decision takes into account our assessment of TotalEnergies’ approach to addressing serious controversies related to Mozambique and the EACOP project,” Pontzen declared.
TotalEnergies has vehemently denied the allegations, with a company spokesperson insisting that after investigation, “the highlighted concerns do not appear to be related to the Kingfisher project operations.” The company revealed it is currently in discussions with Union Investment about its African projects.
While Union declined to reveal the exact scale of its divestment, industry data shows the asset manager held approximately 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, with another 900 million euros stake across other funds.
The crisis deepens existing troubles for TotalEnergies, already facing criminal investigation in France over allegations it failed to assist workers fleeing a 2021 jihadist attack at its Mozambique LNG project. The company denies wrongdoing and hopes to resume construction this summer.
Union Investment, managing a staggering 500 billion euros in assets, has demanded TotalEnergies commission an “independent international audit” and improve transparency and accountability. TotalEnergies says a report it commissioned on EACOP last year will be completed in 2025.
Source: bairdmaritime.com
