Responsible Investor

The absence of peace and equitable development increasingly poses a threat to profitability in Sudan.
Twenty-two US states have adopted Sudan divestment policies for their public pension funds, as have 54 university endowments, both in the US and abroad. Investors outside the United States are also beginning to address Sudan-linked companies. Many of the Dutch pension funds currently are engaging Sudan-linked companies, and PGGM has committed to exclude Sudan-linked companies that prove unresponsive to shareholder engagement. Several major mutual fund families in the US are under increasing client pressure to address Sudan-linked companies. In addition, a number of asset managers based in the UK, France, the US, and elsewhere in Europe are developing collective engagement strategies to influence company behavior.

Berkshire Hathaway and Fidelity recently cut stakes in PetroChina in the midst of Sudan-related pressure, though both denied that it was because of PetroChina’s parent company’s operations in Sudan.
Investors and activists have seen the tangible results of the pressure they place on companies. A number of companies have responded to the targeted divestment campaign. Rolls Royce, CHC Helicopter, ICSA of India, and others left Sudan completely, citing as a reason the humanitarian crises in the country. Schlumberger and La Mancha Resources continue their operations, having adopted and implemented responsible business plans in Sudan. Tremendous opportunities for mainstream and SRI investors exist to engage with problematic Sudan-linked companies, and ultimately to bring about positive change for the people of Sudan.
Scott Wisor is a senior field organizer with the Sudan Divestment Task Force

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