Recommendations from 2010, 2012 and 2014 regarding the companies Repsol S.A. and Reliance Industries Limited

On 1 December 2010 the Council on Ethics recommended the exclusion of the companies Repsol YPF (now Repsol S.A) and Reliance Industries Limited from the Government Pension Fund Global. The companies were partners in a joint venture which was conducting oil exploration activities in Block 39 in the Peruvian Amazon. Repsol was the operator of the joint venture. Block 39 is located in an area which is thought to overlap the territories of indigenous peoples living in voluntary isolation. In the Council’s view, the exploration activity undertaken by the companies in Block 39 would increase the risk that any indigenous peoples who may be living in voluntary isolation within the block would come into contact with outsiders, leading to potentially serious consequences for these peoples’ life, health and way of living. This would constitute an unacceptable risk of the companies contributing to serious and systematic human rights violations.
Please find the Council’s 2010 recommendation here.
En español

On 25 May 2012, the Ministry of Finance requested that the Council on Ethics update its recommendation of 1 December 2010. The Council concluded that the grounds for exclusion were still present.
Please find the Council’s 2012 recommendation here.

On 3 April 2014 the Council on Ethics revoked the recommendation to exclude the companies from the Fund. Repsol had informed the Council that the company had entered into an agreement to sell its share in the joint venture and confirmed that there is currently no ongoing activity in the block. The foundation on which the recommendation on exclusion was built is therefore no longer present.
Please find the Council’s 2014 recommendation here.
En español

The Council’s recommendation not to exclude the companies was submitted to the Ministry of Finance before the Ministry had made a decision on the previous recommendation to exclude them. The Ministry has taken note of the Council’s recommendation.