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Tuesday, June 20, 2006

Sudan Divestment Moving to Targeted Approach
Submitted by: Nancy Coelho, Senior Director of Marketing

No one disputes the facts about the horrific genocide occurring in the Darfur region of Sudan. However, deciding how to influence change in this troubled region has been the source of significant debate, resulting in a variety of divestment strategies among many states' public pension funds as well as many college and university endowment funds.

ISS has been working on this issue since 2001 and has worked with many public pension funds, colleges and universities to meet the regulatory criteria of their respective states. ISS has also worked with student leaders who have been very successful in getting the issue on the agenda at Trustee meetings and state legislatures. What is significant about the students' approach is their thoughtfulness in recommending a targeted approach to divestment by making a distinction between companies that are financially benefiting the Sudanese government versus those that are benefiting Sudan's citizens.

By taking a more targeted approach to divestment, institutional investors have the flexibility to pursue the most effective approach that balances their funds fiduciary obligation to their shareholders while also influencing change in the Sudan region.

A recent story in the Chronicle of Higher Education discusses this move to a more targeted approach regarding Sudan Divestment. To read the story, Download file

We welcome your comments on the Sudan Divestment movement.

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