Open letter to Vanguard trustees
June 11, 2009
Dear Vanguard Trustees,
We, the undersigned, urge Vanguard to drop its opposition to Question 3 on the proxy ballot of certain of its funds and adopt the genocide-free investment procedures proposed by concerned shareholders and coordinated by Investors Against Genocide.
Millions of Vanguard customers are currently voting on this important social issue and will continue to do so until July 2, 2009. Vanguard customers now have an opportunity to request that the Vanguard board “institute procedures to prevent holding investments in companies that, in the judgment of the board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights.”
Vanguard is opposing Question 3 and claims that the shareholder proposal “duplicates” Vanguard’s existing procedures. However, shareholders have no way to judge this claim for themselves since Vanguard has not provided a clear statement of its procedures and has not released the names of companies about which it has concerns or what actions it intends to take to prevent holding investments
that it deems problematic. With the genocide in Darfur now entering its seventh year, Vanguard’s current approach to companies that substantially contribute to genocide is inadequate.
For Vanguard’s customers to have confidence that their funds are not and will not be invested in companies that substantially contribute to genocide, Vanguard should either adopt the proposed shareholder proposal or, alternatively, take the following steps:
SEC filings show that, as of December 31, 2008 and January 31, 2009, certain Vanguard funds continued to own hundreds of millions of dollars of stock in companies that are widely cited as the worst problem companies supporting the regime in Sudan: Petrochina, CNPC, Sinopec, ONGC and Petronas. Revenue from these oil companies allows the government of Sudan, headed by a wanted war criminal, to arm and pay its proxy militia, thereby continuing its campaign of mass death and destruction in Darfur.
Public recognition of genocide-free investing has grown over the last few years. The House and Senate unanimously passed the Sudan Accountability and Divestment Act in December 2007, which supports the right of states and other fiduciaries to divest from companies supporting the government of Sudan. At least 27 states and 61 colleges and universities have decided to divest from Sudan, including the University of Pennsylvania whose President, Amy Gutmann, is a Vanguard Trustee.
We urge Vanguard to listen to the millions of private investors who have already voted for genocide-free investing. It is time for Vanguard to embrace and fully implement a procedure to prevent holding investments in companies that substantially contribute to genocide or crimes against humanity.
Sincerely,
Americans Against the Darfur Genocide
Nikki Serapio, Director
Armenian National Committee of America
Aram Hamparian, Executive Director
American Jewish World Service
Ruth Messinger, Executive Director
Corporate Governance
James McRitchie, Publisher
Darfur Alert Coalition
Ali Dinar, President
Darfur Coalition of Georgia
Melanie Nelkin, Chair
Enough Project
John Norris, Executive Director
Genocide No More-Save Darfur
Marv Steinberg, Founder and Coordinator
Investors Against Genocide
Eric Cohen, Chairman
Jewish Council of Public Affairs
Rabbi Steve Gutow, President and CEO
Jewish World Watch
Tzivia Schwartz-Getz, Executive Director
Kentuckiana Interfaith Taskforce on Darfur
Bob Brousseau, Chair
Massachusetts Coalition to Save Darfur
Susan Morgan, Director of Communication
Massachusetts Council of Churches
Rev. Jack Johnson, Executive Director
Midwest Coalition for Responsible Investments
Barbara Jennings, Coordinator
New York City Coalition for Darfur
Sharon Silber, Co-founder
Physicians for Human Rights
Susannah Sirkin, Deputy Director
San Francisco Bay Area Darfur Coalition
Martina W. Knee, Member, Executive Committee
Save Darfur Coalition
Mark Lotwis, Senior Director of Campaign Advocacy
Stand Canada
Anne Wagner, Principal Director
Stanford STAND
Angie McPhaul, Advocacy Coordinator
Stop Genocide Now
Gabriel Stauring, Founder & Director
Unitarian Universalist Association
Timothy Brennan, Treasurer & CFO
Unitarian Universalist Service Committee
Charlie Clements, President and CEO
Westchester Darfur Coalition
Roberta Roos, Coordinator
June 11, 2009
Dear Vanguard Trustees,
We, the undersigned, urge Vanguard to drop its opposition to Question 3 on the proxy ballot of certain of its funds and adopt the genocide-free investment procedures proposed by concerned shareholders and coordinated by Investors Against Genocide.
Millions of Vanguard customers are currently voting on this important social issue and will continue to do so until July 2, 2009. Vanguard customers now have an opportunity to request that the Vanguard board “institute procedures to prevent holding investments in companies that, in the judgment of the board, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights.”
Vanguard is opposing Question 3 and claims that the shareholder proposal “duplicates” Vanguard’s existing procedures. However, shareholders have no way to judge this claim for themselves since Vanguard has not provided a clear statement of its procedures and has not released the names of companies about which it has concerns or what actions it intends to take to prevent holding investments
that it deems problematic. With the genocide in Darfur now entering its seventh year, Vanguard’s current approach to companies that substantially contribute to genocide is inadequate.
For Vanguard’s customers to have confidence that their funds are not and will not be invested in companies that substantially contribute to genocide, Vanguard should either adopt the proposed shareholder proposal or, alternatively, take the following steps:
- Provide shareholders with a clear, public policy detailing how Vanguard intends to avoid holding companies that substantially contribute to genocide or crimes against humanity;
- Name the companies about which Vanguard currently has concerns; and
- Specify the action to be taken against problem companies.
SEC filings show that, as of December 31, 2008 and January 31, 2009, certain Vanguard funds continued to own hundreds of millions of dollars of stock in companies that are widely cited as the worst problem companies supporting the regime in Sudan: Petrochina, CNPC, Sinopec, ONGC and Petronas. Revenue from these oil companies allows the government of Sudan, headed by a wanted war criminal, to arm and pay its proxy militia, thereby continuing its campaign of mass death and destruction in Darfur.
Public recognition of genocide-free investing has grown over the last few years. The House and Senate unanimously passed the Sudan Accountability and Divestment Act in December 2007, which supports the right of states and other fiduciaries to divest from companies supporting the government of Sudan. At least 27 states and 61 colleges and universities have decided to divest from Sudan, including the University of Pennsylvania whose President, Amy Gutmann, is a Vanguard Trustee.
We urge Vanguard to listen to the millions of private investors who have already voted for genocide-free investing. It is time for Vanguard to embrace and fully implement a procedure to prevent holding investments in companies that substantially contribute to genocide or crimes against humanity.
Sincerely,
Americans Against the Darfur Genocide
Nikki Serapio, Director
Armenian National Committee of America
Aram Hamparian, Executive Director
American Jewish World Service
Ruth Messinger, Executive Director
Corporate Governance
James McRitchie, Publisher
Darfur Alert Coalition
Ali Dinar, President
Darfur Coalition of Georgia
Melanie Nelkin, Chair
Enough Project
John Norris, Executive Director
Genocide No More-Save Darfur
Marv Steinberg, Founder and Coordinator
Investors Against Genocide
Eric Cohen, Chairman
Jewish Council of Public Affairs
Rabbi Steve Gutow, President and CEO
Jewish World Watch
Tzivia Schwartz-Getz, Executive Director
Kentuckiana Interfaith Taskforce on Darfur
Bob Brousseau, Chair
Massachusetts Coalition to Save Darfur
Susan Morgan, Director of Communication
Massachusetts Council of Churches
Rev. Jack Johnson, Executive Director
Midwest Coalition for Responsible Investments
Barbara Jennings, Coordinator
New York City Coalition for Darfur
Sharon Silber, Co-founder
Physicians for Human Rights
Susannah Sirkin, Deputy Director
San Francisco Bay Area Darfur Coalition
Martina W. Knee, Member, Executive Committee
Save Darfur Coalition
Mark Lotwis, Senior Director of Campaign Advocacy
Stand Canada
Anne Wagner, Principal Director
Stanford STAND
Angie McPhaul, Advocacy Coordinator
Stop Genocide Now
Gabriel Stauring, Founder & Director
Unitarian Universalist Association
Timothy Brennan, Treasurer & CFO
Unitarian Universalist Service Committee
Charlie Clements, President and CEO
Westchester Darfur Coalition
Roberta Roos, Coordinator