presentation on divestment

Fundraising Committee

Presentation overview

Roles of the Fundraising committee Divestment

Roles of the Fundraising Committee:

Fundraising for humanitarian organizations Budgeting club expenses Researching divestment strategies

What’s so important about divestment?

“The divestment movement [helps] draw international attention to the appalling situation in Darfur while pressuring the foreign companies working with the murderous Sudanese government to pull out. That could be a catalyst for change in Africa’s worst killing zone.”

- The Los Angeles Times Editorial Board, March 2006

How does this all work?

Sudanese government uses foreign oil services companies to extract oil and receives millions of dollars from these companies $580 million in oil revenues in 2001 alone1

$349 million in military spending in 2001 alone (60% of oil revenue)1

70% spent to support military in 20072

1http://www.hrw.org/reports/2003/sudan1103/8.htm Human Rights Watch2http://www.sudandivestment.org/divestment.asp Sudan Divestment

Oil money in Sudan funds the military and government enabling genocide

1http://www.sudandivestment.org/divestment.asp Sudan Divestment

Targeted divestment can have an enormous impact on the genocide Definition: sale of stock in companies most

culpable of funding the genocide in Darfur and a commitment to not buy stock in companies that support genocide in Darfur

U.S. law prohibits American companies from operating directly in Sudan but firms are legally able to invest in foreign companies operating in Sudan

Does not advocate withdrawal from companies helping the people of Sudan (e.g. agriculture, infrastructure, pharmaceuticals, etc.)

Divestment does not hurt investors

Economist and Nobel Prize winner Joseph Stiglitz

"The government does not have a heavy development agenda--it's not as though the government is busy building schools in Darfur," Stiglitz says. "It's a pretty clear case of this money being used against the government's own people."

Oil money in Sudan funds the military and government enabling genocide


Divestment is an effective way of pressuring the Sudanese government to halt genocide

U.S. sanctions in 1997 caused the Sudanese government to drop support for terrorism and cooperate with counter-terrorism1

Sudanese government took a 6-page ad in the New York Times to counteract the divestment movement and attract foreign investment1

Inside reports from officials in the Sudanese government indicates worry about divestment3

Divestment campaign caused Canadian oil company Tailsman Energy’s share prices to drop 1/3 pressuring them to leave Sudan led to government negotiations ending the country’s 21-year civil war in 2002 but excluded discussion of Darfur1

Divestment was effective in ending apartheid in South Africa News reports about divestment have appeared in a variety of

media forms and continues to keep attention on the Darfur genocide

1http://www.calvert.com/sudan/8336.html Calvert Company2http://www.sudandivestment.org/divestment.asp Sudan Divestment3 Sudan Divestment campaign video

Which companies are offenders and which have divested?

Highest offending companies unwilling to change PetroChina (China) ONGC (India) Petronas,

Muhibbah Engineering, Kencana Petroleum (Malaysia)

Lundin Petroleum (Europe)

Petrofac (UK) Alstrom (France)

Targeted investment firms in the U.S. with holdings in PetroChina Franklin Templeton JP Morgan Chase Capital

Group/American Funds

Fidelity (divested some)

Vanguard

Investment firms that have divested Calvert Clean Yield Group Domini Social

Investments Pax World Prentiss Smith and

Company, Inc. Stewardship Partners Trillium Asset

Managemetn Walden Asset

Management/Boston Trust

Women’s Equity Fund Helicopter Corporation Rolls Royce, PLC Siemens


States and universities that have divested.


Divested universities indicated by blue dots

Summary of current events 22 states have divested 23 states have initiated divestment (12 have legislation in progress) US government approved the Sudan Accountability and Divestment

Act prohibiting federal contracts with companies in Sudan’s oil, power and military sectors with protection to asset managers that divest funds from Sudan

58 universities have divested 47 universities have initiated divestment 12 cities have divested 9 international and religious organizations have divested 15 countries have divested including the U.S. 9 companies have ceased or changed their practice

Advertisement to persuade Fidelity Investments to divest

Advertisement to persuade individual investors to divest

New legislation on divestment and comment by Speaker of the House, Nancy Pelosi

-Nancy Pelosi (D-CA), Speaker of the House of RepresentativesSan Francisco Save Darfur Coalition Divestment Press Conference, release: October 1, 2007

Divestment does not hurt investing companies

Research costs: Sudan screen list costs ~$5000/year Sliding scale pricing available, free research for large pension

funds

Transaction costs: purchasing and selling stocks have fees Unavoidable

Reputational cost: investment restrictions deter competitive bids from investing companies Missouri in 2005 opened a $5 mil. portfolio to “terror-free” bids

(no companies with ties to ANY terrorist-sponsoring state), received 4 bids with 6 different options. Subsequent investment showed no negative impact on return

1http://www.sudandivestment.org/docs/options_and_resources.pdf Sudan Divestment

Divestment does not hurt investing companies

Opportunity cost: moving investments to other companies lowers return Economically equivalent companies (i.e. Chevron, USEC) have

outperformed companies invested in Sudan (e.g. PetroChina, Total S.A., respectively) historically

Tracking error cost: index funds are not created equal Funds are close enough since divestment effects <1% of any

major index funds holdings

American business cost: divestment hurts American jobs American companies are not allowed to invest in terrorist-

harboring Sudan unlike the heavily invested companies South African apartheid

1http://www.sudandivestment.org/docs/options_and_resources.pdf Sudan Divestment

How individual students can support divestment Sign a petition against investing in genocide targeting firms with holdings in

PetroChina www.DivestForDarfur.org

Take action on a national level 1-800-GENOCIDE

Take action on a state level www.sudandivestment.org

Attend divestment events to pressure firms www.savedarfur.org/divest

Join STAND or form a STAND chapter at your school www.StandNow.org

Learn more about divestment www.sudandivestment.org

www.sudandivestment.org

http://www.sudandivestment.org/screener

presentation on divestment

News & Politics