Stanford announces decision to divest in PetroChina, ABB Ltd., Sinopec and Tatneft stock

Stanford University today announced its decision to divest all directly held investments it may hold in PetroChina, ABB Ltd., Sinopec and Tatneft because of their business operations in support of the Sudanese government, whose actions in Darfur have been condemned universally, including by a unanimous censure vote of the U.S. Congress.

The decision to divest was made by the university's Board of Trustees on Tuesday, June 7, based on a recommendation made by the Special Committee on Investment Responsibility (SCIR). Stanford will send letters to its investment managers recommending that they also divest their holdings in these companies. Stanford will vote its proxies in support of this position.

The SCIR, whose members are trustees, made the recommendation based on a report submitted by the Advisory Panel on Investment Responsibility, whose members include faculty, staff, students and alumni approved by the president of the university. That group, which is charged with advising the president and trustees on investment responsibility matters, had met with student members of the Stanford group Students Taking Action Now: Darfur.

The Stanford University Statement on Investment Responsibility Concerning Endowment Securities allows the university trustees to act based on their judgment of corporate policies or practices that cause "substantial social injury."

"Divestment is an act that should be made rarely and carefully," said Stanford President John Hennessy. "In this case, it was clear that the genocide occurring in Darfur, which appears to be at least partly enabled by these four companies, is in direct opposition to Stanford University's principles."

Following is the Board of Trustees resolution:

The Board of Trustees Special Committee on Investment Responsibility recommends the following resolution:

RESOLVED, Stanford University will divest all directly held investments in PetroChina, ABB Ltd., Sinopec and Tatneft because of their business operations in support of the Sudanese government. Stanford will send letters to its investment managers recommending that they also divest their holdings in these companies. Stanford will vote its proxies in support of this position.

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