Headlines
Union Investment cuts TotalEnergies stake over East African project allegations
Published by Global Banking & Finance Review®
Posted on May 22, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 22, 2025
3 min readLast updated: January 23, 2026
Union Investment divests from TotalEnergies over human rights concerns in East Africa, calling for an independent audit. TotalEnergies denies allegations.
By Virginia Furness, America Hernandez and Simon Jessop
LONDON/PARIS (Reuters) -Germany's Union Investment has dropped French oil major TotalEnergies from its sustainability funds and called for an independent human rights audit following fresh allegations of abuses at a $15 billion project in East Africa.
The move by Union, a top-20 investor according to LSEG data, comes ahead of TotalEnergies' annual shareholder meeting on Friday and could potentially undermine its standing among investors focused on environmental, social and governance issues.
TotalEnergies denied the allegations made by non-profit Just Finance International (JFI) concerning the Kingfisher oil site in Uganda, part of the East African Crude Oil Pipeline (EACOP) project in which Total has a 62% stake.
A spokesperson for the oil major added it was in talks with Union Investment about its African projects.
Union declined to confirm the scale of its divestment. Data from industry tracker Morningstar Direct showed Union held around 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, and still holds a stake of around 900 million euros ($1 billion) across other funds.
While rival oil majors such as BP, Shell and Equinor have walked back promises to invest in wind and solar, Total has continued to add renewables, winning support from those keen to play the sector's transition to a lower-carbon economy.
The company, however, has faced criticism from human rights and environmental activists over the impacts of East African pipeline and Mozambique LNG projects.
JFI said it found evidence of alleged forced evictions, violence against women, beatings and extortion by Ugandan security forces at the Kingfisher oil site in late 2024.
JFI's report, released in May, was based on interviews with more than 40 people living and working in the area over the course of two years.
Union decided to drop Total from its sustainable funds after reviewing a draft of the report and engaging with JFI over its findings, said Chief Sustainability Officer Henrik Pontzen.
"This decision takes into account our assessment of TotalEnergies' approach to addressing serious controversies related to Mozambique and the EACOP project," he said.
The TotalEnergies spokesperson cited the company's June 2024 response to a previous JFI report that, after investigating, "the highlighted concerns do not appear to be related to the Kingfisher project operations".
Kingfisher is majority-owned by TotalEnergies, which has an about 57% stake, but is operated by partner China National Offshore Oil Corporation which owns 28%. Uganda's national oil company owns 15%.
CNOOC, Uganda's national oil company and the Ugandan government did not respond to requests for comment.
TotalEnergies is the subject of a criminal complaint and investigation in France that it failed to assist workers at its LNG project in Mozambique fleeing a 2021 jihadist attack. It denies any wrongdoing and hopes to resume building the LNG project this summer.
Pontzen said Union, which manages 500 billion euros in assets, had asked the company to commission an "independent international audit" into the controversies and wanted improved transparency and accountability.
TotalEnergies said a report it commissioned on EACOP last year would be completed in 2025.
($1 = 0.8853 euros)
(Additional reporting by Elias Biryabarema and Ella Cao; Editing by Tommy Reggiori Wilkes and Emelia Sithole-Matarise)
Union Investment decided to drop TotalEnergies from its sustainability funds due to serious controversies related to human rights allegations at the Kingfisher oil site in Uganda.
TotalEnergies faced allegations of forced evictions, violence against women, and extortion by Ugandan security forces at the Kingfisher oil site, as reported by Just Finance International.
Union Investment has called for an independent international audit to address the controversies surrounding TotalEnergies' projects, aiming for improved transparency and accountability.
TotalEnergies has denied the allegations and stated that it is in talks with Union Investment regarding its African projects, emphasizing its commitment to addressing concerns.
The East African Crude Oil Pipeline project, which includes the Kingfisher oil site, has been criticized for its environmental and human rights impacts, leading to increased scrutiny from investors.
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