(Bloomberg) -- Two of the biggest operators of detention centers in the US rejected allegations of human rights breaches that Norway’s biggest pension fund said drove its decision to unload shares of the companies.
GEO Group Inc. said in a statement that it follows standards set by US authorities, which also decide who is detained and released at the facilities. CoreCivic Inc said it has clear commitments “regarding resident rights and treatment.”
KLP, which oversees about $70 billion, said earlier this week that it sold its stakes in CoreCivic and GEO Group for roughly 4 million kroner ($377,000). The Oslo-based pension fund said it divested the shares because the companies represented an “unacceptable risk” to its responsible investment guidelines.
GEO and CoreCivic have denied reports of alleged human rights abuses. In response to KLP, GEO said in a statement late Monday that it “has always been committed to the safe and humane treatment of all individuals under our care and to protecting their human rights.”
CoreCivic said “we have a detailed human rights policy that clearly outlines our commitments regarding resident rights and treatment, including legal rights, safety and security, healthcare, reentry programming, visitation and standards of living.”
Both companies characterized KLP’s reasoning for selling the stocks as misleading. GEO said it “has never played a role in decisions related to the detention or release of individuals at U.S. Immigration and Customs Enforcement (ICE) Processing Centers, nor have we ever played any role in the adjudication of immigration cases.” And CoreCivic added that the majority of its civil immigration facilities are run on behalf of ICE and “in accordance with their policies and oversight.”
KLP said Tuesday that it stood by its decision, citing the companies’ low human-rights rating from MSCI Controversies.
©2022 Bloomberg L.P.
Advertisement