presentation on divestment

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  • Helicopter corporation: world’s largest provider of helicopter services to global offshore oil industry Rolls Royce PLC: sells oil-engineering equipment
  • Each blue dot represents a university
  • presentation on divestment

    1. 1. http://youtube.com/watch?v=cqq3Bb44JjE http://www.youtube.com/watch?v=y31TNgu-Nf4
    2. 2. Fundraising Committee
    3. 3. Presentation overview <ul><li>Roles of the Fundraising committee </li></ul><ul><li>Divestment </li></ul>
    4. 4. Roles of the Fundraising Committee: <ul><li>Fundraising for humanitarian organizations </li></ul><ul><li>Budgeting club expenses </li></ul><ul><li>Researching divestment strategies </li></ul>
    5. 5. What’s so important about divestment? <ul><li>“ The divestment movement [helps] draw international attention to the appalling situation in Darfur while pressuring the foreign companies working with the murderous Sudanese government to pull out. That could be a catalyst for change in Africa’s worst killing zone.”   </li></ul><ul><li>- The Los Angeles Times Editorial Board, March 2006 </li></ul>
    6. 6. How does this all work? <ul><li>Sudanese government uses foreign oil services companies to extract oil and receives millions of dollars from these companies </li></ul><ul><ul><li>$580 million in oil revenues in 2001 alone 1 </li></ul></ul><ul><ul><li>$349 million in military spending in 2001 alone ( 60% of oil revenue) 1 </li></ul></ul><ul><ul><li>70% spent to support military in 2007 2 </li></ul></ul>1 http://www.hrw.org/reports/2003/sudan1103/8.htm Human Rights Watch 2 http://www.sudandivestment.org/divestment.asp Sudan Divestment
    7. 7. Oil money in Sudan funds the military and government enabling genocide 1 http://www.sudandivestment.org/divestment.asp Sudan Divestment
    8. 8. Targeted divestment can have an enormous impact on the genocide <ul><li>Definition: sale of stock in companies most culpable of funding the genocide in Darfur and a commitment to not buy stock in companies that support genocide in Darfur </li></ul><ul><li>U.S. law prohibits American companies from operating directly in Sudan but firms are legally able to invest in foreign companies operating in Sudan </li></ul><ul><li>Does not advocate withdrawal from companies helping the people of Sudan (e.g. agriculture, infrastructure, pharmaceuticals, etc.) </li></ul>
    9. 9. Divestment does not hurt investors <ul><li>Economist and Nobel Prize winner Joseph Stiglitz &quot;The government does not have a heavy development agenda--it's not as though the government is busy building schools in Darfur,&quot; Stiglitz says. &quot;It's a pretty clear case of this money being used against the government's own people.&quot; </li></ul>
    10. 10. Oil money in Sudan funds the military and government enabling genocide 1 http://www.sudandivestment.org/divestment.asp Sudan Divestment
    11. 11. Divestment is an effective way of pressuring the Sudanese government to halt genocide <ul><li>U.S. sanctions in 1997 caused the Sudanese government to drop support for terrorism and cooperate with counter-terrorism 1 </li></ul><ul><li>Sudanese government took a 6-page ad in the New York Times to counteract the divestment movement and attract foreign investment 1 </li></ul><ul><li>Inside reports from officials in the Sudanese government indicates worry about divestment 3 </li></ul><ul><li>Divestment campaign caused Canadian oil company Tailsman Energy’s share prices to drop 1/3 pressuring them to leave Sudan  led to government negotiations ending the country’s 21-year civil war in 2002 but excluded discussion of Darfur 1 </li></ul><ul><li>Divestment was effective in ending apartheid in South Africa </li></ul><ul><li>News reports about divestment have appeared in a variety of media forms and continues to keep attention on the Darfur genocide </li></ul>1 http://www.calvert.com/sudan/8336.html Calvert Company 2 http://www.sudandivestment.org/divestment.asp Sudan Divestment 3 Sudan Divestment campaign video
    12. 12. Which companies are offenders and which have divested? <ul><li>Highest offending companies unwilling to change </li></ul><ul><ul><li>PetroChina (China) </li></ul></ul><ul><ul><li>ONGC (India) </li></ul></ul><ul><ul><li>Petronas, Muhibbah Engineering, Kencana Petroleum (Malaysia) </li></ul></ul><ul><ul><li>Lundin Petroleum (Europe) </li></ul></ul><ul><ul><li>Petrofac (UK) </li></ul></ul><ul><ul><li>Alstrom (France) </li></ul></ul><ul><li>Targeted investment firms in the U.S. with holdings in PetroChina </li></ul><ul><ul><li>Franklin Templeton </li></ul></ul><ul><ul><li>JP Morgan Chase </li></ul></ul><ul><ul><li>Capital Group/American Funds </li></ul></ul><ul><ul><li>Fidelity (divested some) </li></ul></ul><ul><ul><li>Vanguard </li></ul></ul><ul><li>Investment firms that have divested </li></ul><ul><ul><li>Calvert </li></ul></ul><ul><ul><li>Clean Yield Group </li></ul></ul><ul><ul><li>Domini Social Investments </li></ul></ul><ul><ul><li>Pax World </li></ul></ul><ul><ul><li>Prentiss Smith and Company, Inc. </li></ul></ul><ul><ul><li>Stewardship Partners </li></ul></ul><ul><ul><li>Trillium Asset Managemetn </li></ul></ul><ul><ul><li>Walden Asset Management/Boston Trust </li></ul></ul><ul><ul><li>Women’s Equity Fund </li></ul></ul><ul><ul><li>Helicopter Corporation </li></ul></ul><ul><ul><li>Rolls Royce, PLC </li></ul></ul><ul><ul><li>Siemens </li></ul></ul>1 http://www.sudandivestment.org/divestment.asp Sudan Divestment
    13. 13. States and universities that have divested. 1 http://www.sudandivestment.org/divestment.asp Sudan Divestment Divested universities indicated by blue dots
    14. 14. Summary of current events <ul><li>22 states have divested </li></ul><ul><li>23 states have initiated divestment (12 have legislation in progress) </li></ul><ul><li>US government approved the Sudan Accountability and Divestment Act prohibiting federal contracts with companies in Sudan’s oil, power and military sectors with protection to asset managers that divest funds from Sudan </li></ul><ul><li>58 universities have divested </li></ul><ul><li>47 universities have initiated divestment </li></ul><ul><li>12 cities have divested </li></ul><ul><li>9 international and religious organizations have divested </li></ul><ul><li>15 countries have divested including the U.S. </li></ul><ul><li>9 companies have ceased or changed their practice </li></ul>
    15. 15. Advertisement to persuade Fidelity Investments to divest
    16. 16. Advertisement to persuade individual investors to divest
    17. 17. New legislation on divestment and comment by Speaker of the House, Nancy Pelosi -Nancy Pelosi (D-CA), Speaker of the House of Representatives San Francisco Save Darfur Coalition Divestment Press Conference, release: October 1, 2007
    18. 18. Divestment does not hurt investing companies <ul><li>Research costs: Sudan screen list costs ~$5000/year </li></ul><ul><ul><li>Sliding scale pricing available, free research for large pension funds </li></ul></ul><ul><li>Transaction costs: purchasing and selling stocks have fees </li></ul><ul><ul><li>Unavoidable </li></ul></ul><ul><li>Reputational cost: investment restrictions deter competitive bids from investing companies </li></ul><ul><ul><li>Missouri in 2005 opened a $5 mil. portfolio to “terror-free” bids (no companies with ties to ANY terrorist-sponsoring state), received 4 bids with 6 different options. Subsequent investment showed no negative impact on return </li></ul></ul>1 http://www.sudandivestment.org/docs/options_and_resources.pdf Sudan Divestment
    19. 19. Divestment does not hurt investing companies <ul><li>Opportunity cost: moving investments to other companies lowers return </li></ul><ul><ul><li>Economically equivalent companies (i.e. Chevron, USEC) have outperformed companies invested in Sudan (e.g. PetroChina, Total S.A., respectively) historically </li></ul></ul><ul><li>Tracking error cost: index funds are not created equal </li></ul><ul><ul><li>Funds are close enough since divestment effects <1% of any major index funds holdings </li></ul></ul><ul><li>American business cost: divestment hurts American jobs </li></ul><ul><ul><li>American companies are not allowed to invest in terrorist-harboring Sudan unlike the heavily invested companies South African apartheid </li></ul></ul>1 http://www.sudandivestment.org/docs/options_and_resources.pdf Sudan Divestment
    20. 20. How individual students can support divestment <ul><li>Sign a petition against investing in genocide targeting firms with holdings in PetroChina </li></ul><ul><ul><li>www.DivestForDarfur.org </li></ul></ul><ul><li>Take action on a national level </li></ul><ul><ul><li>1-800-GENOCIDE </li></ul></ul><ul><li>Take action on a state level </li></ul><ul><ul><li>www.sudandivestment.org </li></ul></ul><ul><li>Attend divestment events to pressure firms </li></ul><ul><ul><li>www.savedarfur.org/divest </li></ul></ul><ul><li>Join STAND or form a STAND chapter at your school </li></ul><ul><ul><li>www.StandNow.org </li></ul></ul><ul><li>Learn more about divestment </li></ul><ul><ul><li>www.sudandivestment.org </li></ul></ul>
    21. 21. www.sudandivestment.org
    22. 22. http://www.sudandivestment.org/screener

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