According to a press release, KLD’s Iran Compliance product meets all U.S. state legislative requirements mandating Iran divestment and identifies companies with major involvement in sectors such as nuclear, defense, oil, and mineral extraction.
As of October 29, 2007, KLD identified 36 companies from 17 countries with involvement in Iran based on the following criteria:
- Contracts with or the provision of supplies to the government of Iran or state-owned companies
- Iran government has direct or indirect equity share in the company
- Involved in consortiums or projects commissioned by the government of Iran
- Oil or mineral extraction in Iran accounts for 10% of total business operations
- Investments in Iran’s petroleum resources on or after August 5, 1996 equals $20 million or more in any one-year period
- Engaged in business with Iranian organization labeled as a terrorist organization by U.S. government
- Engaged in business operations with entities in the defense or nuclear sectors of Iran
KLD’s product is updated monthly and allows managers to monitor their portfolios.
The company released a similar compliance tool in July to pinpoint companies with ties to Sudan (See KLD Releases Sudan Divestment Compliance Tool ).