TIAA-CREF

TIAA-CREF announces new policy and
Investors Against Genocide withdraws shareholder proposal

• On March 26, TIAA-CREF announced its decision to vigorously engage PetroChina and other problem companies partnering with the Government of Sudan and to divest from those companies if they continue to substantially contribute to genocide or crimes against humanity. TIAA-CREF’s policy applies to the ongoing genocide in Darfur, Sudan as well as to future genocides. This policy at TIAA-CREF is a clear victory for the cause of genocide-free investing.
• As a result of this significant commitment from TIAA-CREF, Investors Against Genocide has withdrawn its shareholder proposal from the proxy ballot for TIAA-CREF’s July shareholders’ meeting.
• Click here to read our press release.
• "“We recognize that genocide and crimes against humanity, whether in Darfur or elsewhere, require a higher standard of response.”
  - TIAA-CREF statement
  
• "We commend TIAA-CREF for its clear and public leadership in drawing the line at genocide. While ethical investing may mean different things to different people, TIAA-CREF’s decision supports the belief of the overwhelming majority of Americans who do not want their savings and pension funds connected to genocide. By its statement today, TIAA-CREF has recognized the unique importance of taking aggressive action in the face of genocide and crimes against humanity."
  - Eric Cohen, Chairperson, Investors Against Genocide
  

Earlier engagement with TIAA-CREF

• Click here to read Eric Cohen's statement at the TIAA-CREF annual meeting on July 15, 2008, in Denver.
  TIAA-CREF did not include the genocide-free shareholder proposal for voting at its annual meeting on July 15, 2008, ignoring the groundswell of support from TIAA-CREF customers.
  
• Click here for coverage of the 2008 annual meeting by Rocky Mountain News.
  
• Click here to read op-ed in The Chronicle for Higher Education.
• Click here to read TIAA-CREF's response from June 4, 2008. 

 Support genocide-free investing

• If you haven't already joined us, please volunteer to submit a shareholder proposal for mutual funds you have held for over a year and in which you have at least $2,000 invested.  We’ve made the process very easy and completely confidential. Click here for details.  Becoming a volunteer costs nothing, and has tremendous leverage, since your submission to any given fund may result in all of that fund's shareholders having a chance to vote on the proposal to avoid investing in companies that substantially contribute to genocide.  Depending on the fund, that could mean that a million shareholders, or more, may get a chance to vote!
• Take Action.  See this page for more that you can do to help.
  

TIAA-CREF's holdings

• TIAA-CREF had been one of the few large financial institutions in the world to have investments in all four of the worst offenders helping to support the genocide in Darfur — PetroChina/CNPC, Petronas, ONGC, and Sinopec.
  
• TIAA-CREF had followed a policy of weak engagement for years with no results to show for it, while continuing to acquire stock in the companies about which it claims to be concerned. 
  
  Reference this chart of TIAA-CREF's shareholdings, varying up and down over time.
  
  

  Date	PetroChina	Sinopec (China Petroleum)	CNPC Hong Kong	ONGC	Petronas Dagangan	Petronas Gas	Sinopec Shanghai Petrochem.
  12/31/2006	38,514,441	7,738,764	-	111,184	279,300	197,400	978,000
  3/31/2007	30,574,441	10,488,764	-	168,490	279,300	205,200	1,400,000
  6/30/2007	37,842,441	13,406,764	-	175,703	279,300	205,200	1,180,000
  9/30/2007	42,586,441	15,408,764	-	208,166	279,300	293,500	1,588,000
  12/31/2007	17,239,075	14,182,764	9,620,000	195,949	279,300	297,100	1,588,000
  3/31/2008	20,023,075	16,188,764	1,920,000	225,517	279,300	388,600	1,852,000
  6/30/2008	20,975,075	16,840,764	2,500,000	267,179	475,200	398,200	2,010,000
  9/30/2008	23,189,075	18,528,764	3,090,000	297,779	475,200	395,000	2,114,000
  12/31/2008	21,152,542	16,880,764	2,730,000	279,393	209,100	479,000	2,706,000

  
  
  Here are sample observations of this data showing that TIAA-CREF's trading policy is disconnected from its engagement of problem companies.
• TIAA-CREF increased its holdings of PetroChina over the prior quarter in Q2 and Q4 of 2007, and increased its overs in Q1, Q2 and Q3 of 2008.
  
• In Q3 of 2007, TIAA-CREF increased its holdings of all of the four worst offending companies.
• In Q4 2007, TIAA-CREF sold some PetroChina, but bought 9.6 million shares of PetroChina’s parent, CNPC in Hong Kong.
• Value of holdings
• TIAA-CREF’s December 31, 2007, holdings showed $30.7 million of PetroChina and $6.1 million of CNPC
• TIAA-CREF’s December 31, 2008, holdings showed $18.5 million of PetroChina and $0.8 million of CNPC
• Note that the value of PetroChina dropped over the year, though TIAA-CREF increased its share holdings, because the share price of PetroChina has dropped significantly.
• Similarly, the value of the shares for the companies listed in the table dropped from $67.1 million to $35.9 million over the year.
• College Retirement Equities Fund stock account and global equities account were holders of these problem companies as of 12/31/2007. 
• College Retirement Equities Fund stock account was the holder of the problem companies as of 12/31/2008.
•  Other TIAA-CREF funds had holdings at other times.