KLP, Norway’s largest pension fund, has removed G4S from its investment universe and portfolio, citing the risk of human rights violations.

It has divested from NOK 31.4m (€3.1m) worth of securities.

The move follows a similar stance taken by Norges Bank Investment Management, which runs the country’s giant sovereign wealth fund, the Government Pension Fund Global (GPFG).

KLP’s head of responsible investments Jeanett Bergan said: “G4S operates in countries such as Qatar and United Arab Emirates where there is a risk of violating renowned norms from the international labour organisation ILO.”

Bergan explained that migrant workers in these countries were often forced to take up loans to pay fees in order to secure employment.

They are usually tied to contracts for two years or more, giving them little ability to challenge terms of employment.

Bergan added: “G4S does not accept that migrant workers can change employer during their contract period. This limits their freedom.”

Last month, Norway’s Council of Ethics – which makes recommendations for the GPFG – reported similar concerns, leading the $1trn sovereign wealth fund to exclude G4S.

“The Council of Ethics’ recommendation is well grounded, therefore KLP doesn’t see any reason not to follow it,” Bergan said.

Index provider FTSE Russell has recently come under pressure for including G4S in its FTSE4Good benchmark.

According to a recent report in The Guardian newspaper in the UK, campaign groups including ShareAction and Amnesty International have called for FTSE Russell to review G4S’ inclusion in the ethical investment index.

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