Risc of harmful investments by Dexia

Despite the policy regarding the arms industry, the chance of a harmful investment with Dexia remains high. Hopefully the risk of harmful investments will be reduced drastically by Dexia in the near future.

Explanation of Dexia ranking

Dexia has a policy regarding the environment. Insurance products included in the Portfolio 21 project do not invest in companies that cause serious environmental damage. To judge the environmental damage companies are excluded that are also excluded from the Norwegian Pension Fund. These companies are made public. Dexia also excludes some companies involved in some forms of harmful energy extraction. These policies have been evaluated as unsatisfactory for one reason:

• Limited applicability: The exclusion of companies does not apply to all products and services. The exclusion of companies that cause serious environmental damage, for example, only applies to insurance products.

Dexia does not have policy regarding freedom & democracy. Dexia has only stated that they do not have any investments in projects in Burma. This lack of policy obviously unsatisfactory.

Dexia has a policy regarding the theme of labour rights. The Portfolio 21 project reinvests the insurances reserves of the Dexia group. These reserves cannot be invested in companies or governments that are involved in serious human rights abuses. Dexia states that its investment policy takes account of respect for the ILO guidelines on child labour, forced labour, discrimination and trade union freedom. This policy has been evaluated as unsatisfactory for three reasons:

• Unclear criteria: Dexia does not make clear which investments can or cannot be accepted
• Limited applicability: this policy does not apply to all of Dexia’s investments
• Unclear application: Dexia does not show how the policy has affected the practice of the bank. It is never stated which investments are allowed and which are refused.

Dexia has a policy regarding the exclusion of a number of controversial weapon systems such as anti-personnel mines and cluster munitions. Companies involved in these weapon systems are excluded from all investments by Dexia. Dexia goes even further regarding loans: companies that are involved in the production of offensive weapons and military material cannot be financed. This policy has been evaluated as satisfactory:

• Thorough criteria: The policy of Dexia gives clear limits for investment in the arms industry. The credit policy goes a step further
• Widely applicable: The policy regarding controversial weapons is valid for all financing and investment decisions of Dexia
• Clear application: Dexia makes the application of the policy clear by releasing a list of which investments in which producers of military material have taken place.

Examples of harmful investments by Dexia

In June 2008, Dexia participated in a banking syndicate that underwrote an issuing of bonds of Total worth € 59 million. Total is involved in gas extraction which supports the Burmese junta. The laying of the pipeline and the surrounding infrastructure led to serious human rights abuses.

Begin 2010: Dexia owns or manages shares in:

Total – US$ 137.93 million: Total works with the Burmese military dictatorship to extract gas from the Yadana gas field. The project is the largest source of income for the military dictators. The laying of the pipeline in Burma has been achieved as a result of forced labour, murder and torture.

Petrochina – US$ 11.07 million: The Chinese oil company Petrochina operates the majority of Sudan’s oil industry and is also active in Burma. Sudan and Burma are highly reliant on foreign direct investment to fund its military and finance internal repression.

Wal-Mart – US$ 11.01 million: The US supermarket chain Wal-Mart breaches the most basic labour rights both in its stores and in its suppliers.

More harmful investments by Dexia and other banks, check www.banksecrets.eu