NETHERLANDS - PGGM has pulled its investment out of PetroChina due to human rights violations by the company.
A statement from PGGM said: "The pressure exerted on PetroChina on behalf of Pensioenfonds Zorg en Welzijn (PGGM) to improve the practices of this company has failed to have the desired result.
"After intensive discussions PGGM has decided that this dialogue serves no further purpose and has withdrawn from investment in PetroChina."
PGGM claimed PetroChina's parent company, the state owned CNPC, was involved in human rights violations in Sudan.
It also considered the company as the largest player in the African nation's petrol industry and was therefore a major financer of the country's government which had its own history of human rights issues.
The pension fund considered CNPC had not taken adequate steps to address either of these issues.
PGGM noted the company had based PetroChina outside of countries which would allow investors to avoid any direct involvement with human rights issues, but said it would be placed on its exclusion list in any case.
"Ownership, governance and financial streams between CNPC and PetroChina overlap to such an extent that PGGM regards both organisations as a single entity," the statement concluded.
The pension fund also excluded a further four unspecified companies from its investments.
At the beginning of 2008, PGGM appointed three ethical advisers to give guidance on investment issues.
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