A major European investment company, Union Investment, has removed French oil giant, TotalEnergies, from its sustainability funds after new accusations of human rights abuses surfaced concerning a massive oil project in East Africa. The project in question is the $15 billion East African Crude Oil Pipeline (EACOP), which involves Uganda, Tanzania, and international oil companies.
Union Investment, which is one of the top 20 shareholders in TotalEnergies according to LSEG data, took this decision just before the company’s annual shareholders meeting. This move could affect the company’s image among investors who place strong value on environmental, social, and governance (ESG) standards.
The main concerns are about the Kingfisher oil site in Uganda, where TotalEnergies holds a 62% stake. According to a new report by a non-governmental organisation called Just Finance International (JFI), there have been serious allegations including forced evictions, assaults on women, physical violence, and extortion by local security forces working in or around the site.
JFI claims that these findings came from interviews with over 40 local people living and working near the Kingfisher site between 2022 and 2024. Their report, released in May 2025, has intensified scrutiny on TotalEnergies’ operations in East Africa.
TotalEnergies, however, has denied these accusations. A spokesperson said that the company is already in discussions with Union Investment regarding its projects in Africa. They also pointed out that an earlier response from the company in June 2024 found no direct link between the complaints and operations at the Kingfisher oil site. The Kingfisher project is managed by China National Offshore Oil Corporation (CNOOC), which owns 28%, while Uganda’s National Oil Company holds the remaining 15%.
Union Investment, based in Germany and managing around €500 billion in assets, said it made the decision after examining a draft of JFI’s report and having conversations with the NGO. Henrik Pontzen, Union’s Chief Sustainability Officer, said the company considered TotalEnergies’ overall response to previous controversies in East Africa, including in Mozambique.
Pontzen stated that Union is demanding more accountability and transparency. He added that TotalEnergies should commission an independent international audit to fully investigate the human rights allegations connected to its projects. TotalEnergies responded that it had already ordered a separate report into EACOP in 2024, and this report is expected to be ready in 2025.
Although TotalEnergies has invested significantly in renewable energy and has gained support from investors looking to back green energy, it has also faced consistent criticism from human rights and environmental groups. In contrast to competitors like BP, Shell, and Equinor, which have scaled back their clean energy ambitions, TotalEnergies continues to pursue a strategy that includes both fossil fuels and renewables.
Aside from East Africa, the company is also under investigation in France over allegations related to its LNG project in Mozambique. Activists claim that TotalEnergies failed to assist workers trying to escape a jihadist attack in 2021. The company denies any wrongdoing and says it plans to resume construction on the project later this year.
So far, Union Investment has not revealed the full size of its divestment from TotalEnergies’ sustainable funds. However, data from Morningstar Direct showed that Union held about €50 million in TotalEnergies bonds and shares in those specific funds, and still owns around €900 million in other funds not governed by sustainability rules.
While CNOOC, the Uganda National Oil Company, and the Ugandan government have yet to respond to the report, the pressure on TotalEnergies is increasing. Activists and stakeholders are now watching closely to see whether the oil major will accept calls for an independent investigation or continue defending its current operations.
