University of Washington weighs stocks tied to Sudan
By Nick Perry, The Seattle Times
WASHINGTON, June 9, 2005 — The University of Washington’s Board of Regents today will consider whether to use the university’s shareholder muscle to put pressure on companies doing business in Sudan.
Student activists, backed by some faculty members, have urged the university to take strong measures against five companies, which they claim are indirectly funding genocide in Sudan through oil and diesel ventures. The university’s holdings in the five stocks, worth $12.5 million, are part of its $1.3 billion endowment fund.
The regents are not planning to dump the stocks at the moment but are considering such “shareholder action” as highlighting human-rights abuses during shareholder meetings and writing “letters of engagement” to the companies. The Finance, Audit and Facilities committee will vote on the ideas this morning, with the full board due to take it up later in the day.
The university has acted on human-rights concerns before. In 1986, the regents voted to get rid of stock in firms operating in South Africa. That policy was reversed seven years later, after the dismantling of South Africa’s apartheid laws.
In 1995, the regents voted to take shareholder action against companies operating in Burma, highlighting consumer boycotts and government lobbying during company meetings, a policy that continues today.
And five years ago, the university decided to dump tobacco stocks – a decision based on economics more than ethics.
The university and student activists asked the nonprofit Conflict Securities Advisory Group for a list of companies with economic ties to Sudan. The list included ExxonMobil, Lafarge, Royal Dutch/Shell, Siemens AG and Total. Companies providing humanitarian or medical supplies were excluded. Efforts to reach ExxonMobil, the only U.S.-based firm on the list, weren’t successful yesterday.
American companies are barred from owning investments in Sudan due to U.S. economic sanctions. Activists say some maintain interests through subsidiaries or other instruments.
Concerns about abuses in Sudan are growing. Former U.S. Secretary of State Colin Powell said in September that killings in the Darfur region of the northern-African country amount to genocide. Human-rights groups say government-backed militia have been raiding homes, raping and killing.
The UW student lobbying follows debates at other colleges. Two months ago, for example, Harvard University divested from the company PetroChina, which has investments in Sudan.
Trevor Zimmer, a spokesman for student group Save Darfur: UW, said it has gathered more than 1,000 signatures from students and faculty.
Zimmer said while he ultimately wants the university to dump stocks, shareholder action would be a good first step by the regents. “They have a proven track record of persisting on ethical issues once the board decides to pursue them,” he said.