Investors Against Genocide
Draw the line at
investing in genocide
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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 As a result of this significant commitment from TIAA-CREF, Investors Against Genocide has withdrawn its shareholder proposal from the proxy ballot for TIAA-CREF’s July shareholders’ meeting.
Additionally, on March 10, Vanguard announced that it had implemented a new, corporate-wide policy that it said was “substantially identical” to Investors Against Genocide’s shareholder proposal regarding investments in companies connected with genocide and crimes against humanity. According to Vanguard’s SEC filing of preliminary proxy materials for its shareholder meeting on July 2, 2009, the Vanguard funds’ “trustees directed Vanguard to implement a formal procedure for regular reporting to the trustees on portfolio companies whose direct involvement in crimes against humanity or patterns of egregious abuses of human rights would warrant engagement or potential divestment.”
We will monitor Vanguard's actions for a concrete demonstration of their new policy, with indications perhaps as early as their next SEC filing on March 31. Depending on what we see, we will decide whether to withdraw the 30 proposals that are now scheduled for votes by Vanguard shareholders.
We will keep you posted as events unfold. With the precedents now set at TIAA-CREF and at Vanguard we have higher hopes for action at other funds as well. Our strategy of submitting shareholder proposals is proving successful, to force engagement on the need for investment firms to implement a policy against investing in genocide. Thanks so much for all you’ve done to make that strategy work and to achieve these significant milestones.
The Investors Against Genocide Team
PS – There are still major funds that haven’t taken action, including American Funds, Barclays, Fidelity, and Franklin Templeton. If you haven't already joined us, please volunteer to submit a shareholder proposal for any mutual fund 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!