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The pension fund vowed not to invest in nine selected companies in the future until the government of Sudan halts the genocide that has resulted in egregious human rights violations. It currently holds no investments in the companies.
The decision was part of a nine-point position statement on Sudan adopted by the CalPERS Board.
"There is no place for these companies in our investment portfolio until the atrocities and human rights violations end," said Rob Feckner, President of CalPERS Board of Administration. "We intend to continue constructive engagement to ensure that other companies we may invest in are not contributing to genocide."
The nine companies include:
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Bharat Heavy Electrical Ltd.
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China Petroleum and Chemical Corp.
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Nam Fatt Co.
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Oil & Natural Gas Co.
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PECD Bhd.
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PetroChina Co.
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Sudan Telecom Co.
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Tatneft OAO; and
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Videocon Industries Ltd.
The statement also urges the federal government to publish a definitive list of companies with Sudan ties, asks already identified companies to work with such international human rights groups as the United Nations Global Compact to fully declare their business operations in Sudan, and encourages engagement with companies to effect change.
"We believe constructive engagement with companies is critical right now," said Charles P. Valdes, Chair of CalPERS Investment Committee. "It means identifying companies that have a presence in Sudan, determining the impact of their business on human rights, and demanding that they respond to our concerns."
CalPERS action to prohibit investment in the nine companies is also subject to legislation that would require the State to indemnify CalPERS from any financial losses incurred as a result of state mandated divestment.
Additionally, CalPERS has asked five portfolio companies to collaborate with the Business Leaders Initiative on Human Rights and CDA Collaborative Learning Projects to address Sudan issues. One of those companies, Total, reports no business in Sudan. ABB, Alcatel, Royal Dutch Shell, and Siemens reported they have operations there as well as formal support of the UN Global Compact and adoption of human rights guidelines.
CalPERS has also joined the Connecticut State Treasurer's Office and the New York State Comptroller's Office to ask other companies to disclose direct or indirect business activities in Sudan. They are Alstom SA, CNPC (Hong Kong) Ltd., Ericsson (LM) Tel, Finemeccanica S.p.A., Marathon Oil Corp., Reliance Industries, Rolls-Royce Group PLC, Shulumberger Ltd., Stolt-Nielsen SA, Sulzer AG, ThysswenKrupp AG, and Vodafone Group PLC.
CalPERS statement can be found in its press room at www.calpers.ca.gov.
CalPERS is the nation's largest pension fund with assets totaling more than $210 billion. The System provides retirement and health benefits to 1.4 million State and local public employees and their families.
