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The Sudan Investment Resolution, adopted by the Washington State Investment Board (WSIB) in March 2007
and the WSIB Resolution on Iran Investment, adopted by the Board in February 2008, include a commitment that WSIB staff will make
an annual report to the board on its efforts to identify companies in which the WSIB is invested that have business operations in Sudan or Iran and encourage those companies to curtail or
cease their operations in that country.
Iran Investments
Two companies in the WSIB's Fixed Income portfolio have been identified as having business activities in Iran: Petrobras, a Brazilian oil company; and Empresa Nacional Del Petrole (ENAP), a
Chilean oil company. Staff will send letters to each company's CEO asking for a written explanation of its business activities in Iran and encouraging the company to cease current business
operations in Iran.
In previous engagement with Petrobras, the company stated that its Iran activities represented .01 percent of its total assets.
Two other oil companies in which the WSIB is invested - Petronas and StatoilHydro - have announced plans to end their operations in Iran. Norway's StatoilHydro is one of four international oil
companies that declared their intention to end their investments in Iran as a result of strict economic sanctions adopted by the U.S. in July.
Sudan Investments
Each year WSIB staff asks fund managers in the Public Equity program for information regarding investments in companies doing business in Sudan. Staff uses the "highest offender" list provided
by the Conflict Risk Network to identify companies with business activities in Sudan.
This year the WSIB became a member of CRN, which provides us with access to CRN's analysts, who assist the WSIB with template engagement letters, company contacts and address, ad hoc
research and related tasks. It also provides us with quarterly company reports (as opposed to one report per year, which we had been receiving as a non-member subscriber).
Our fund managers are currently reviewing the list of companies to determine the extent of the WSIB's investments. Once that review is complete, staff will work with the Conflict Risk
Network on drafting letters to the executives of those companies asking them to curtail their operations in Sudan.
Both resolutions expire January 1, 2011. At its December 16 meeting, the Board approved renewing the resolutions, with both scheduled to sunset on January 1, 2014 unless affirmatively
readopted by the WSIB. |
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