wfn.org | Resolution: Disinvestment from companies that operate in the Sudan

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2001-303

Disinvestment from companies that operate in the Sudan

     A resolution adopted by the Executive Council of the Episcopal Church 
October 17, 2001

     Resolved, That the Executive Council meeting in Jacksonville, Florida, 
October 15-18, 2001, hereby adopts a policy of disinvestment from any company 
with direct operations in Sudan until such time that there is peace and justice 
in that country and directs the Treasurer to divest from any such company 
currently held in DFMS portfolios; and be it further

     Resolved, That a copy of this resolution be sent to any company from which 
this Church disinvests in accordance with this policy; and be it further

     Resolved, That other church investors, including the Church Pension Fund, 
parishes, and dioceses, are urged to adopt a similar policy to the extent 
permissible under laws governing fiduciaries.

Explanation

     The civil war in Sudan has laid waste to the country's economy, with little 
economic production or western corporate involvement in any sector except for 
oil.  Oil revenues, which earn Sudan between $450-500 million per year, allow the 
Sudanese army to purchase weapons and prosecute the war (Multinational Monitor, 
October 2000).  In February 2001, the Executive Council noted that investments in 
the Sudanese oil industry "fuels the government's military efforts and systematic 
violence against the Sudanese people."  The involvement of western oil companies-
-including Talisman Energy (a Canadian company)--pose serious ethical issues for 
shareholders in such companies.  A May 2000 report by Amnesty International 
entitled "Sudan: The Human Price of Oil" concluded that "massive human rights 
violations by Sudanese security forces, various government-allied militias, and 
armed opposition groups are clearly linked to foreign companies' oil operations."  

     Further, it is clear that not only do oil revenues allow the Sudanese army 
to purchase armaments and continue to pay its armed forces, but that the 
generation of such revenues directly leads to human rights violations.  In 1999, 
the United Nations' Special Rapporteur to Sudan, Leonardo Franco, stated that 
"long-term efforts by the various governments of the Sudan to protect oil 
production have included a policy of forcible population displacement in order to 
clear oil-producing areas and transportation of southern civilians" (cited in the 
Multinational Monitor, October 2000).  This Church has witnessed to its belief 
that economic development and activity must first and foremost serve human needs, 
and it is clear that that current oil exploration and extraction activities do 
not serve human needs in Sudan, but rather enable continued war and genocide.

     The entire population of Sudan has suffered during a civil war that has 
ranged for 34 of the last 45 years.  We affirm our opposition to the religious 
persecution of Sudanese Christians, the abduction and enslavement of human 
beings, and attacks on civilian targets--all of which are ongoing in the Sudan.

     Peace and security for all of Sudan's citizens is not possible while the 
civil war continues.  The amount of money that Sudan earns every year from oil 
revenue is almost identical to the amount it spends on the war.  Just as this 
Church disinvested from South Africa and Namibia in 1985--not just to protest 
against apartheid but also to make a statement that it would not profit from apartheid, 
this Church undertakes a similar policy with regard to Sudan.

     This policy is consistent with this Church' witness on issues related to the Sudan.  
The General Conventions of 1994 and 2000 affirmed the Episcopal Church of the 
United States of America's continuing solidarity, through prayer and witness, with the 
Episcopal Church of Sudan.  Further, the Executive Council, at its February 2001 
meeting, called upon church investors to review their financial holdings and to consider 
divestment, shareholder resolutions and other appropriate strategies to deter investment 
by companies materially engaged in the Sudanese oil industry.

     This Church adopts this policy with sorrow and is hopeful that it can be reversed 
when there is lasting peace and justice for all of the people of Sudan.  At present the 
only companies currently held in Episcopal Church portfolios with direct involvement 
and investment in Sudan are BP Amoco and Talisman Energy.  BP Amoco invested 
$578 million in PetroChina's initial public offering; PetroChina owns 40 percent of the 
Greater Nile Petroleum Operating Company, which is the main entity extracting oil in 
Sudan.  Talisman Energy owns 25 percent of the Greater Nile Petroleum Operating 
Company.