Though the Corporation unanimously voted to divest from Sudan two weeks ago, a list of companies with ties to the Sudanese government has yet to be determined. Until this list is approved by the Corporation's Advisory and Executive Committee, Brown cannot divest funds or notify the University's external managers of the policy.
The University will divest from companies that "meet the criteria for supporting and facilitating the Sudanese government in its continuing sponsorship of genocidal actions and human rights violations in Darfur," according to a Feb. 25 e-mail sent to the Brown community from President Ruth Simmons.
A partial list could come before the committee as soon as its meeting next Friday. But no deadlines have been set, and thorough research on these companies remains the priority, according to Executive Vice President for Finance and Administration Elizabeth Huidekoper.
Still, divesting is an urgent issue, said Huidekoper, who is facilitating the divestment effort.
"We really want to do this as soon as possible," Huidekoper, who is facilitating the divestment effort, said.
Once the Corporation approves a list of companies, the Investment Office will divest from any whose stock the University owns directly. But the majority of Brown's investments are managed externally, sometimes in hedge or mutual funds over which the University may have little control.
Though this means endowment funds could be invested in blacklisted companies without the University's approval or knowledge, Huidekoper said all managers will receive a letter stating the decision to divest and "saying these are the companies we feel we want to stay away from."
"We may really be saying these companies we will not invest in, not these are the companies we will divest from," she said. "But it's still a very clear and important statement."
Before the Corporation's Feb. 25 decision, the Advisory Committee on Corporate Responsibility in Investing recommended divestment from nine companies it determined provided revenue to the Sudanese government. The ACCRI developed the list in cooperation with the Darfur Action Network, the Brown chapter of Students Taking Action Now: Darfur.
Largely composed of petroleum and telecommunications companies, the list included ABB Ltd., Alcatel, PetroChina, Petronas, Siemens, Sinopec, Taftnet and Total SA and Marathon Oil - the only U.S. corporation on the list.
Brown's decision differed from that of the five other colleges and universities that have divested in that a final list was not approved or released with the decision to divest. But as many of these institutions' lists differ slightly, Huidekoper said further research into specific companies is necessary.
"There are questions about why some companies are on some lists and others are on other lists," she said.
Louis Putterman, professor of economics and chair of the ACCRI, said though the committee is researching five additional companies not on the ACCRI's initial list, no deadlines have been set.
"We haven't been told what procedure the Corporation plans to use other than that: ask the Advisory and Executive Committee for approval," Putterman said. He added the ACCRI does not generally have information on the University's actual investments.
"By the time we conclude the discussion we might (have new holdings), it's just changing all the time," he said. "The point is to declare a policy ... to communicate to companies."
Regardless of the companies on the final list, Brown is not invested in many corporations frequently described as being linked to Sudan, Huidekoper said. The University does not release its investment decisions or holdings, but Huidekoper said Brown is "not currently invested in PetroChina," the company from which Harvard University divested its $2.4 million holding in 2005 after significant student protest.
Given Brown's significantly smaller endowment, the University's ultimate divestment will be a "small dollar amount, depending on the lists, it may be zero," Huidekoper said.
Putterman said though the ACCRI believes Brown should not be earning profits from companies tied to Sudan, external managers complicate divestment because "getting a good return on the portfolio ... is the first goal."
Scott Warren '09 and Gabriel Corens '06.5, leaders of DAN, said they hope external managers will re-evaluate their own investment decisions as they receive more letters from universities about the issue.
Warren, Corens and nearly 50 others protested on the steps of Faunce House during the Corporation meeting two weeks ago. "I thought there was no way they could say no," Warren said.
The University's decision reached 60 newspapers worldwide, according to Warren. Also, CNN International will soon air a story on divestment that includes coverage of Brown's decision.
Putterman said though the University's action is more important symbolically than financially, institutions' divestment could eventually affect the Sudanese government's funding.
"Brown is not a big enough shareholder to have a big impact by itself, but Brown could give a boost to a movement that could become big enough to have a real impact," he said. "We think it's likely that a number of companies will withdraw from Sudan ... and we think the government may in fact change its policies. It's probably already sensitive to this because it's counting on the money that will be earned."
Oil and other companies operating in Sudan pay taxes and other fees directly to the government, likely providing its main source of military funding, Putterman said.
"Military expenditure has climbed simultaneously with oil investment" in Sudan, Putterman said.
As Brown and other universities have addressed the issue, Putterman said divestment from Sudan is gaining momentum - Columbia University representatives contacted him soon after the decision to discuss the possibility of the university's divestment.
Momentum is a key goal of the divestment movement, Warren said. As soon as the Corporation's decision made headlines, Warren said students at five other schools contacted him about taking similar actions.
Amherst and Dartmouth colleges and Yale University all divested in February, just prior to Brown's decision. Stanford University divested from four companies in 2005, and the University of California system will vote on divestment March 16, according to Warren.
Still, Huidekoper said many universities have yet to address the issue. "Amazingly enough, it's an issue that many have yet to engage," she said.
Putterman and Warren both said state pension funds are the next step in the divestment movement. The states of Illinois, New Jersey and Oregon have already divested, and Warren said DAN is looking to Rhode Island next.
"Students who may want to do something about the genocide in Darfur shouldn't feel satisfied that enough has been done by Brown, because this is not enough," Putterman said.
Still, Corens and Warren said it's an important step. "This is one more piece in a larger movement for trying to end this genocide," Corens said.
