Germany’s Union Investment has removed French energy giant TotalEnergies from its sustainability funds and is calling for an independent human rights audit, following fresh allegations of abuse tied to a $15 billion oil project in East Africa.
The decision by Union, ranked among TotalEnergies’ top 20 investors according to LSEG data, comes just days before the oil major’s annual shareholder meeting and could dent its reputation among investors committed to environmental, social, and governance (ESG) principles.
At the center of the controversy are claims made by advocacy group Just Finance International (JFI) concerning alleged forced evictions, violence against women, beatings, and extortion by Ugandan security forces at the Kingfisher oil site, part of the East African Crude Oil Pipeline (EACOP) project. TotalEnergies holds a 62% stake in the pipeline.
TotalEnergies has denied the allegations, saying they are not connected to its operations at Kingfisher. The company said it remains in talks with Union Investment about its projects in Africa.
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While Union Investment declined to reveal the exact scale of its divestment, data from Morningstar Direct indicates it had around €50 million in TotalEnergies shares and bonds across its sustainable funds. It still holds a broader position worth about €900 million (approx. $1 billion) in other funds.
“This decision reflects our assessment of TotalEnergies’ handling of serious controversies tied to Mozambique and the EACOP project,” said Henrik Pontzen, Union’s Chief Sustainability Officer.
“We have urged the company to initiate an independent international audit to ensure transparency and accountability.”
The JFI report, released in May 2025, is based on two years of interviews with more than 40 residents and workers in the affected area. Union made its decision after reviewing a draft of the report and engaging directly with JFI.
Despite rival oil majors like BP, Shell, and Equinor scaling back commitments to renewables, TotalEnergies has maintained investment in solar and wind energy, earning some support for its low-carbon transition efforts. However, its operations in East Africa and Mozambique’s LNG project continue to attract criticism from environmental and human rights activists.
The Kingfisher site is operated by China National Offshore Oil Corporation (CNOOC), which holds a 28% stake, while Uganda’s National Oil Company owns 15%. TotalEnergies controls the majority stake at 57%. Neither CNOOC nor Ugandan authorities responded to requests for comment.
TotalEnergies is also facing a criminal investigation in France, accused of failing to protect workers during a 2021 jihadist attack near its LNG project in Mozambique. The company has denied wrongdoing and plans to resume construction of the project later this year.
TotalEnergies has said that an independent report on the EACOP project, commissioned in 2024, is expected to be completed in 2025.
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