Don't fuel genocide in Darfur

Few people realize that when they invest in mutual funds, many times those funds are in turn investing their savings in the companies that are helping to fund the genocide in Darfur. When they realize this they are usually upset and anxious to take action.

Investors Against Genocide was formed to provide an opportunity for individual investors to collectively take significant action through shareholder proposals. These are free, easy, confidential and have tremendous leverage.

The movement to divest from Sudan had its first result with Harvard announcing divestment from PetroChina in April 2005.

Sudan and its government-sponsored Janjaweed militia have committed pervasive violations of human rights in Darfur, Sudan, since March 2003, earning the designation of the first genocide of the 21st century. More than two years later, the movement to divest from Sudan had its first result with Harvard announcing divestment from PetroChina in April 2005.

More than 5½ years after the genocide began, while the crisis grew and the death toll mounted, major investment companies continued to invest, and often increased their holdings in the worst offending companies helping the government of Sudan fund the genocide.

Americans simply do not want to be connected to genocide. When they learn the facts, people are typically horrified to discover that their money or the company they trusted to manage their money is investing in genocide.

A recent study reported that 71% believe that companies should take into account human rights abuses such as genocide when investing overseas rather than base their investment decisions on economic criteria only. And 77% say they would switch their investments if they learned that those managing their funds had significant investments in firms that were active in Sudan, where the first genocide of the 21st century enters its seventh year.

Investment firms are the largest public investors in the companies helping fund the genocide in Darfur.

Divestment and threat of divestment can have real impact on the government of Sudan and make a difference for the people of Darfur. Investment firms are the largest public investors in the companies helping fund the genocide in Darfur, so the public can have a powerful voice.

If some of these large investors change their investment policies, then the result is significant economic pressure on the offending companies and on the government of Sudan. The government relies on those companies for expertise, capital investment and revenue from oil sales.

In addition, pressure on the Chinese oil companies operating in Sudan can have particular impact, because those companies are primarily owned by the government of China, which is the largest trading partner with Sudan. China has also been protecting Sudan by blocking strong action in the United Nations.

If large numbers of citizens and customers speak loudly, their message will be heard, not only by the problem investment firms, but also by the Chinese and the government of Sudan.

In the face of genocide, each person must take what actions they can to help. Although there may be few direct steps individuals can take, one way persons can take action is how their money is invested, and how the organizations with which they affiliate invest their money.

Millions of Americans are customers of these problem investment companies.

U.S. law prohibits American companies from doing business in Sudan, yet Americans are legally able to invest in foreign companies operating in Sudan. During the past two years, many large investors, including U.S. colleges and state pension funds, have made the responsible decision to divest from PetroChina and other offending companies operating in Sudan.

Recently TIAA-CREF announced it would engage with the four companies IAG targets. TIAA-CREF said it would divest promptly if the companies don’t take significant action to end the genocide.

Vanguard announced it was implementing a policy that was “substantially identical” to the one proposed by IAG. Vanguard has so far declined, though, to identify the companies it will target or the actions it will take.

Millions of Americans are customers of these problem investment companies. Americans can and should expect better from a trusted adviser. Who wants to support a company that insists on investing in companies helping fund genocide?

IAG is recruiting average Americans that have money invested in mutual funds. IAG asks you to submit a shareholder proposal to companies and funds where you invest to ensure they are genocide-free.

IAG has made it easy for you to submit a shareholder proposal on genocide-free investing to your mutual fund or investment firm.

Even if you don’t have money invested in mutual funds you can send a message to complicit companies. You don't have to be an investor to object. Financial companies want your business now or in the future, your voice will matter. For these and other actions you can take go to Investors Against Genocide.

Editor’s note: Irit Tamir is Director of Government Relations and Outreach for Investors Against Genocide. An attorney with a Masters degree in International Law, she has worked in the government prosecuting hate crimes, served as Legislative Director to a state senator and most recently the Director of Government Relations for a non-profit organization. She has been a strong advocate on Darfur since 2005 and co-led the effort to pass the Sudan Divestment bill in Massachusetts.

Investors Against Genocide wants investment firms to avoid or divest holdings of PetroChina (Chinese), Sinopec (Chinese), ONGC (Indian) and Petronas (Malaysian), the four major oil companies partnering with the government of Sudan. IAG’s campaign works with individuals, companies, organizations, financial institutions, the press, investment firm employees, and government agencies to build awareness and to create financial, public relations, and regulatory pressure for investment firms to change. The ultimate goals are that investment firms make a commitment to genocide-free investing and that the government of Sudan ends its deadly genocide in Darfur.