The Markets March 26, 2009

TIAA-CREF Steps Up Efforts in Sudan Divestment

TIAA-CREF said it plans to intensify pressure on target companies that maintain business relations with the Sudanese government, and will divest from companies that fail to take meaningful steps to do so within a reasonable time.
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In an announcement, TIAA-CREF said it will:

  • seek meetings between TIAA-CREF executives and executives of target companies to encourage them to take positive and meaningful humanitarian steps;
  • publicly endorse the U.N.-sponsored Principles for Responsible Investment. Signatories include institutional investors with a combined $2.5 trillion in assets under management with whom TIAA-CREF will join to urge companies operating in Sudan to confront human rights abuses;
  • call upon other financial services companies to follow its lead and increase pressure on target companies.
  • According to the announcement, if target companies—PetroChina, CNPC Hong Kong, Oil and Natural Gas Corporation, Sinopec, and PETRONAS—refuse to meet with TIAA-CREF, it will divest promptly. If they agree to engage in a productive dialogue, TIAA-CREF said it will continue to hold their shares as long as progress continues and as long as portfolio management concerns warrant.
  • Companies that take meaningful steps to discourage the conflict in Darfur will be removed from the target list.

A pdf of TIAA-CREF’s policy statement on corporate governance is here.

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