open letter to uN global
compact regarding petroChina
Investors
Against Genocide
Draw the line at investing in genocide
FOR IMMEDIATE RELEASE
Susan Morgan – Investors Against
Genocide 617-797-0451, susanemorgan@gmail.com
Philip
Honour – Act for Darfur - +44 7979 541520, philhonour@googlemail.com
UN GLOBAL COMPACT CALLED UPON TO INFLUENCE
PETROCHINA TO HELP DARFUR
Over 80 organizations and individuals
ask UN Global Compact to uphold its principles
Boston, MA – May 12, 2008 -
Three days before PetroChina's annual meeting of shareholders,
over 80 civil society organizations including human
rights, corporate accountability, religious and anti-genocide
groups from 17 countries have signed an open letter
to the United Nations Global Compact. The letter calls
upon the UN Global Compact to use its influence with
PetroChina, a compact participant, to help bring an
end to the humanitarian crisis in Sudan. PetroChina,
the listed arm of China National Petroleum Corporation
(CNPC), Sudan's largest oil industry partner, is indisputably
linked to the regime perpetuating the five-year humanitarian
crisis in Darfur which many consider to be genocide.
The letter, which was coordinated
by Boston-based Investors Against Genocide, was also
signed by members of US Congress, Canadian Parliamentarians,
actor Mia Farrow, and Sudan researcher and analyst Eric
Reeves. For the full text of the letter including signatories,
visit www.InvestorsAgainstGenocide.org/UNGCandPetroChina.
"The challenge for the UN Global
Compact," states Eric Cohen, chairperson of Investors
Against Genocide, "is to take firm steps to ensure
that its principles are upheld in the face of the most
egregious human rights violations on the planet. We
therefore respectfully request that the United Nations
Global Compact use its own good offices to encourage
PetroChina, in partnership with its closely related
parent company, CPNC, to engage the Government of Sudan
to help bring a swift end to the ongoing crisis in Sudan.
We believe that such engagement by PetroChina and CNPC
would have a dramatic impact on curtailing the gross
violations of human rights that have been committed
in Sudan for decades."
This request for the UN Global Compact
to engage with its participant, PetroChina, is particularly
timely since the Secretary-General has asked all parts
of the United Nations to recognize 2008 as the 60th
anniversary of the Universal Declaration of Human Rights
(UDHR). The UN Global Compact derives the first two
of its ten principles from the UDHR. The first principle
of the Un Global Compact states that businesses should
support and respect the protection of internationally
proclaimed human rights. The second principle requires
that businesses ensure that they are not complicit in
human rights abuses.
The Global Compact is currently the
world's largest and most widely known voluntary corporate
responsibility initiative, with over 4,000 corporate
participants. It is often criticized by civil society
organizations because of its purely voluntary nature.
According to Bart Slob, a Senior Researcher for the
Amsterdam-based Centre of Research on Multinational
Corporations (SOMO), there are concerns related to the
Compact's assumption that the current form of globalization
can be made sustainable and equitable, and the lack
of independent monitoring. "Without any effective
monitoring and enforcement provisions, the Global Compact
fails to hold corporations accountable," explains
Slob. "It is particularly concerning when participants,
such as PetroChina, that do not uphold the compact's
principles use the prestige of the UN in their public
relations."
In its recently published 2007 Corporate
Social Responsibility (CSR) Report, PetroChina proudly
cites its entry to the Global Compact. PetroChina's
CSR report mentions the Global Compact 12 times, while
there is no mention of PetroChina's support for the
Sudanese government that has committed human rights
violations in Darfur. "The participation of this
company in the Global Compact is detrimental to the
reputation of the United Nations," states Slob.
"PetroChina is wrapping itself in the UN flag to
"bluewash" its image."
The letter asks the UN Global Compact
to influence PetroChina and CNPC to independently, or
collectively with other foreign oil companies operating
in Sudan, request that the Government of Sudan (GoS)
fully and promptly implement all provisions of United
Nations Security Council Resolution 1769, ensure free
and unfettered access for humanitarian aid workers to
the people of Darfur, provide full and unrestricted
land access for peacekeeping troops (including land
for UN bases), cease support for the Janjaweed militia
without delay, and genuinely engage in the Darfur peace
process. Further, the letter asks for the Global Compact
to influence PetroChina/CNPC to make all possible efforts
to contribute to the success of Sudan's Comprehensive
Peace Agreement, including utilizing leverage on its
business affiliates, on the GoS, and on the Government
of South Sudan to ensure that the CPA is implemented
without further delay.
"If PetroChina in concert with
CNPC does not fulfill these requests, and also does
not provide a comprehensive report to the UNGC and the
undersigned within three months from PetroChina's annual
meeting," the letter reads, "we respectfully
request that PetroChina be placed on probationary status
as a Global Compact participant until such actions have
been satisfactorily taken and reported."
The Government of Sudan has a well-documented
history of susceptibility to economic pressure. It is
highly reliant on foreign direct investment not only
to pay its debts and subsidize government expenditures,
but also to fund its military and finance the conflict
in Darfur."
To ensure that the integrity of the
United Nations Global Compact is safeguarded at all
times, the Secretary-General has adopted several "Integrity
Measures" which state that "safeguarding the
reputation, integrity and good efforts of the Global
Compact and its participants requires transparent means
to handle credible allegations of systematic or egregious
abuse of the GC's overall aims and principles."
Although PetroChina has claimed independence from CNPC,
the two companies are inseparable. Management at CNPC
and PetroChina almost completely overlap and the same
individual, Jiang Jiemin, is president of both companies.
Frequent asset transfers between the two entities, which
often take place at subsidized rates, have made CNPC
completely reliant on PetroChina for its financial health.
In a May 2007 report on the relationship between PetroChina
and CNPC, KLD Research & Analytics, an independent
research firm, concluded that "investors should
treat CNPC and PetroChina as if they were a single entity."
Comprehensive research by the Genocide Intervention
Network on the intimate, opaque, and symbiotic relationship
among PetroChina, CNPC, and CNPC's extensive and problematic
operations in Sudan reaches the same conclusion.
####
Investors Against Genocide is a non-profit
organization dedicated to ending investment in genocide.
The organization works with individuals, companies,
organizations, financial institutions, the press, and
government agencies to build awareness and to create
financial, public relations, and regulatory pressure
for investment firms and companies to change. The ultimate
goals are that the Government of Sudan ends its deadly
genocide in Darfur and that companies and investment
firms avoid investing in genocide. For more information,
visit www.investorsagainstgenocide.org.
The Centre for Research on Multinational
Corporations (SOMO) is a Dutch non-profit research organization.
Established in 1973, SOMO undertakes research on the
impact of multinational enterprises and the consequences
of the internationalisation of business, particularly
for developing countries. For more information, visit
www.somo.nl.
The full text of the letter and the full list of signatories
is below:
--------------------------------------------------------------------------------
Mr. Georg Kell, Executive Director
of the Global Compact
CC: Dr. John Ruggie, United Nations
Secretary General's Special Representative on Human
Rights
and Transnational Corporations and other Business Enterprises
Ms. Louise Arbour, United Nations
High Commissioner for Human Rights
Office of the Secretary General
United Nations
New York, NY 10017
May 12, 2008
Dear Mr. Kell,
We write to urge the United Nations Global Compact
(GC) to use its leverage and the privilege and prestige
of membership in the GC to engage with PetroChina Co
Ltd. (PetroChina), a GC participant, on behalf of the
people of Sudan.
As you know, the Secretary-General has launched
a year-long campaign in which all parts of the United
Nations family are recognizing 2008 as the 60th anniversary
of the Universal Declaration of Human Rights (UDHR).
This anniversary is particularly relevant for the GC
which derives the first two of its ten principles from
the UDHR. The first principle of the GC states that
businesses should support and respect the protection
of internationally proclaimed human rights. The second
principle requires that businesses ensure that they
are not complicit in human rights abuses.[1] In spite
of these principles, PetroChina, the listed arm of China
National Petroleum Corporation (CNPC), Sudan's largest
oil industry partner, is indisputably linked to the
regime perpetuating the violent conflict in Darfur.
We write in honor of the 60th anniversary and in advance
of PetroChina's annual meeting of shareholders on May
15, 2008.
Our concerns fall under Measure Four of the GC
Integrity Measures: "Allegations of Systematic
or Egregious Abuses."[2] In this measure, the GC
states that "safeguarding the reputation, integrity
and good efforts of the Global Compact and its participants
requires transparent means to handle credible allegations
of systematic or egregious abuse of the GC's overall
aims and principles." In accordance with these
Integrity Measures, we respectfully request that the
GC will, "use its own good offices to encourage
resolution of the matter," by requesting that PetroChina,
in partnership with its parent company, CPNC:
Engage the Government of Sudan (GoS), either
independently or collectively with other foreign oil
companies operating in Sudan, and request that the GoS
(1) fully and promptly implement all provisions of United
Nations Security Council Resolution 1769 (UNSCR 1769)
which authorizes the deployment of a robust international
peacekeeping force in Darfur, (2) ensure free and unfettered
access for humanitarian aid workers to the people of
Darfur, (3) provide full and unrestricted land access
for peacekeeping troops (including land for UN bases),
(4) cease support for the Janjaweed militia without
delay, and (5) genuinely engage in the Darfur peace
process.
Make all possible efforts to contribute
to the success of Sudan's Comprehensive Peace Agreement
(CPA), including utilizing leverage on its business
affiliates, on the GoS, and on the Government of South
Sudan to ensure that the CPA is implemented without
further delay.
If PetroChina/CNPC does not fulfill these requests,
and also does not provide a comprehensive report to
the UNGC and the undersigned within three months from
PetroChina's annual meeting, we respectfully request
that PetroChina be placed on probationary status as
a GC participant until such actions have been satisfactorily
taken and reported.
Although PetroChina has claimed independence
from CNPC, the two companies are inseparable. Management
at CNPC and PetroChina almost completely overlap and
the same individual, Jiang Jiemin, is president of both
companies. Frequent asset transfers between the two
entities, which often take place at subsidized rates,
have made CNPC completely reliant on PetroChina for
its financial health. In a May 2007 report on the relationship
between PetroChina and CNPC, KLD Research & Analytics,
an independent research firm, concluded that "investors
should treat CNPC and PetroChina as if they were a single
entity."[3] Comprehensive research by the Genocide
Intervention Network on the intimate, opaque, and symbiotic
relationship among PetroChina, CNPC, and CNPC's extensive
and problematic operations in Sudan reaches the same
conclusion.[4]
PetroChina has been engaged regarding
Sudan for at least five years by numerous individual
and institutional investors, including public and private
pension funds, mutual funds and asset managers. Despite
the overwhelming evidence to the contrary, the company
has continuously denied its connection to CPNC and its
operations in Sudan.
We believe that engagement
by PetroChina/CNPC with the GoS would have a dramatic
impact on curtailing the gross violations of human rights
committed in Sudan for decades. The GoS has a well-documented
history of susceptibility to economic pressure. It is
highly reliant on foreign direct investment not only
to pay its debts and subsidize government expenditures,
but also to fund its military and finance the conflict
in Darfur. In fact, a former Sudanese finance minister
estimated that 70% of the government's share of oil
profits is spent on the military.[5]
China is Sudan's largest foreign
investor and most significant international supporter.
Over the past ten years, Beijing has courted the favor
of GoS leaders in order to secure access to petroleum
and other primary resource supplies needed to feed China's
booming economy. As the US and Europe have either imposed
or considered imposing sanctions on Sudan, China invested
an estimated $15 billion into Sudan. The state-owned
CNPC operates the majority of Sudan's oil industry and
has invested at least $5 billion in the country.[6]
In the April 2008 issue of
the Compact Quarterly newsletter, you wrote, "Civil
society must remain vigilant. Over and above being a
partner in implementation, their continued vigilance
will be required to ensure that businesses resist the
temptation to take easy escape routes. It is not enough
for business to focus on specialized engagement opportunities
while neglecting core issues that are also impacted
by their operations. Indeed, it would be wrong to allow
for 'offsets' that serve to ignore other responsibilities.
I hope civil society will not abandon its traditional
watchdog role."[7]
In writing this letter, the
undersigned are fulfilling the responsibility to act
as corporate watchdog which you ask of us. We sincerely
hope that the UN Global Compact and its participant,
PetroChina, will also fulfill their respective responsibilities
to uphold the principles of the GC by taking immediate
and constructive action to help end the egregious violations
of human rights occurring in Darfur for over the past
five years. Please direct any response to this letter
to info@investorsagainstgenocide.org.
Sincerely,
American Jewish World Service
Ruth Messinger, President
New York, NY, USA
Americans Against the Darfur Genocide
Nikki Serapio, Director
Palo Alto, CA
Archdiocese of San Francisco
George Wesolek, Director, Public Policy and Social Concerns.
San Francisco, CA, USA
Armenian Assembly of America
Bryan Ardouny, Executive Director
Washington, DC, USA
Armenian National Committee of America
Aram Hamparian, Executive Director
Washington, DC 20036
Berne Declaration - Erklärung
von Bern
Oliver Classen, Media Officer
Zurich, Switzerland
Brazilian Institute of Social and
Economic Analyses
João Sucupira, Director
Rio de Janeiro, Brazil
Buddhist Peace Fellowship
Zenju Earthlyn Manuel, Executive Director
Buddhist Peace Fellowship National Office
Berkeley, CA USA
Canadian Students for Darfur
Clement Apaak, Founder and Chair
Vancouver, BC, Canada
Centre for Human Rights and Rehabilitation
(CHRR)
Undule Mwakasungura, Executive Director
Lilongwe, Malawi
Centre for Research on Multinational
Corporations (SOMO)
Bart Slob, Senior Researcher
Amsterdam, the Netherlands
Centro de Estudios para el Desarrollo
de la Mujer (CEDEM)
Pamela Caro, Researcher
Santiago de Chile, Chile
Collectif Urgence Darfour
Dr. Jacky Mamou, President
Paris, France
Comité Soudan
Diagne Chanel, Presidente
Paris, France
Clean Yield Asset Management
Rian Fried, President
Greensboro, VT, USA
Corporación DOMOS
Carolina Peyrín
Santiago, Chile
Corporate Accountability International
Kathryn Mulvey, International Policy Director
Boston, Massachusetts, USA
Corporate Governance
James McRitchie, Publisher
Elk Grove, CA, USA
Damanga Coalition for Freedom and
Democracy
Mohamed Yahya, Founder and Executive Director
Washington, DC, USA
Darfur Alert Coalition
Jim Remsen, Interim Executive Director
Philadelphia, PA, USA
Darfur Association in the United States
of America
Mahmoud Braima, President
Baton Rouge, LA, USA
Darfur Call
Ahmed M. Mohamedain, Managing Director of Human Rights
and Advocacy
Amsterdam, The Netherlands
Darfur Community Organization
Bakheit Shata, Founder/Executive Director
Omaha, NE, USA
Darfur Peace and Development
Omer Ismail, Vice President / Advocacy
Washington DC, USA
Darfur People's Association of New
York
Motasim Adam, President
Brooklyn, New York, USA
Domini Social Investments LLC
Adam M. Kanzer, Managing Director & General Counsel
New York, NY, USA
Dream for Darfur
Jill Savitt, Executive Director
New York, NY, USA
EARTHWORKS
Stephen D'Esposito, President and Executive Director
Washington, D.C., USA
ENOUGH: The Project to End Genocide
and Crimes Against Humanity
Cory Smith, Acting Executive Director
Washington, DC, USA
Evangelical Lutheran Church in America
Pat Zerega, Director of Corporate Social Responsibility
Chicago, IL, USA
Mia Farrow
Actor and Human Rights Advocate
USA
Forum for Environment and Development
(ForUM)
Elin Enge, Director
Oslo, Norway
Foundation CentrumCSR.PL
Grzegorz Piskalski, Director
Warsaw, Poland
Friends of the Earth Europe
Darek Urbaniak, Extractive Industry Campaign Coordinator,
Brussels, Belgium
Fundación Casa de la Paz
Carolina Silva, Executive Director
Santiago, Chile
Fundación El Otro
Marcelo Ugo, Presidente
Buenos Aires, Argentina
Fundación SES
Roque A. Grunauer, Coordinator
Buenos Aires, Argentina
Genocide Alert
Robert Schuette, Head Executive
Cologne, Germany
Genocide No More - Save Darfur
Marv Steinberg, Coordinator
Redding, CA, USA
groundWork (Friends of the Earth)
Bobby Peek, Director
Pietermaritzburg, South Africa
Harrington Investments, Inc.
John Harrington, CEO
Napa, CA, USA
Holocaust Center of Northern California
Morgan N. Blum, Director of Education
San Francisco, CA, USA
Humanity United
Randy Newcomb, President
Redwood City, CA, USA
IDP Action
Frank Smith, Director, Policy and Communications
London, UK
India Committee of the Netherlands
Gerard Oonk, Director
Utrecht, the Netherlands
Interfaith Center on Corporate Responsibility
Laura Berry, Executive Director
New York, NY, USA
Investors Against Genocide
Eric Cohen, Chairperson
Boston, MA, USA
Jewish Community Relations Council
Rabbi Douglas Kahn, Executive Director
San Francisco, CA, USA
Jewish World Watch
Tzivia Schwartz-Getzug, Executive Director
Encino, CA, USA
Leadership Conference of Women Religious
Marie Lucey, Associate Director for Social Mission
Silver Spring, MD, USA
Massachusetts Coalition to Save Darfur
William Rosenfeld, Treasurer and Board Member,
Boston, MA, USA
Member of the Legislative Assembly,
Alberta
Dr. David Swann
Alberta, Canada
Member of Parliament - Government
of Canada
The Hon. Marlene Jennings P.C.
Montreal, Qc, Canada
Member of Parliament - Government
of Canada
Alan Tonks
Weston, Ontario, Canada
Member of Parliament - Government
of Canada
Alexa McDonough
Halifax, Nova Scotia, Canada
Member of Parliament - Government
of Canada
Paul Dewar
Ottawa-Centre, Ontario, Canada
Member of U. S. Congress
Michael E. Capuano (MA-08)
USA
Member of U. S. Congress
James P. McGovern (MA-3)
USA
Member of U. S. Congress
Donald M. Payne (NJ-10)
USA
Member of U. S. Congress
John F. Tierney (MA-6)
USA
My Sisters Keeper
Rev. Gloria White Hammond, MD, Executive Director
Boston, MA. USA
Observatorio de Responsabilidad Social
Corporativa
Orencio Vázquez Oteo, Coordinator
Madrid, Spain
New York City Coalition for Darfur
Eileen Weiss, Co-founder
New York, NY, USA
Organización de Consumidores
y Usuarios (ODECU)
Stefan Larenas Riobó, President
Santiago de Chile, Chile
Programa Laboral de Desarrollo (PLADES)
Giovanna Larco Drouilly, Executive president,
Lima, Peru
Eric Reeves
Sudan researcher, analyst, and advocate
Northampton, MA, USA
San Francisco Bay Area Darfur Coalition
Martina W. Knee, Member, Executive Committee,
San Francisco, CA, USA
Save Darfur Coalition
Jerry Fowler, President
Washington, DC, USA
SaveDarfurWashingtonState
Deborah Jones, President
Seattle, WA, USA
Social Support Foundation
Louis Acheampong, Executive Director
Obuasi – Adansi, Ghana
Society for Threatened Peoples
Sharon Silber, UN representative
Gottingen, Germany
STAND Canada
Yoni Levitan, Executive Director
Canada
SETEM Madrid
Gabriela Arizmendi, Managing Director
Madrid, Spain
Stop Genocide Now
Gabriel Stauring, Co-founder and Director
Redondo Beach, CA, USA
Sudan Divestment UK
Hamish Falconer, Executive Director
London, UK
Taller de Acción Cultural
Verónica Salas, Director
Santiago, Chile
Jennifer Taub,
Coordinator of the Business Law Program
University of Massachusetts, Amherst, MA USA
The Aegis Trust
Dr. James Smith, Chief Executive Officer
Nottinghamshire/London, UK
Tri-State Coalition for Responsible
Investment
Patricia A. Daly, OP, Executive Director
Montclair, NJ, USA
Unitarian Universalist Association
Timothy Brennan, Treasurer
Boston, MA, USA
Unitarian Universalist Service Committee
Charlie Clements, President and CEO
Cambridge, MA, USA
U.S. Campaign for Burma
Jeremy Woodrum, Director
Simon Billenness, Co-chair, Board of Directors
Waging Peace
Louise Roland-Gosselin, Executive Director,
London, UK.
Walden Asset Management
Tim Smith, Senior Vice President
Boston, MA, USA
Wassa Communities Affected by Mining
(WACAM)
Daniel Owusu-Koranteng, Executive Director
Ghana
--------------------------------------------------------------------------------
[1] United Nations Global Compact
(UNGC), "The Ten Principles," http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html,
accessed 3 May 2008.
[2] UNGC, "Integrity," http://www.unglobalcompact.org/AboutTheGC/integrity.html,
accessed 3 May 2008.
[3] KLD Research & Analytics,
"Public Companies Operating in Sudan: The Relationship
of PetroChina Company Ltd. to China National Petroleum
Corporation," 9 May 2007, http://www.kld.com/newsletter/archive/press/pdf/KLD_Analysis_of_PetroChina_Company.pdf,
accessed 3 May 2008.
[4] Sudan Divestment Task Force (SDTF),
"PetroChina, CNPC, and Sudan: Perpetuating Genocide,"
15 April 2007 (Updated 3 January 2008), http://www.sudandivestment.org/position.asp#petrochina,
accessed 3 May 2008.
[5] SDTF, "PetroChina, CNPC,
and Sudan: Perpetuating Genocide," 15 April 2007
(Updated 3 January 2008): 3, http://www.sudandivestment.org/docs/PetroChina_CNPC_Sudan.pdf,
accessed 3 May 2008.
[6] Ibid, 5.
[7] Compact Quarterly, "The Future
of Corporate Responsibility" by Georg Kell, Volume
2008, Issue 1, http://www.enewsbuilder.net/globalcompact/e_article001076831.cfm?x=bcwrKs5,b8Jtqm0v,w,
accessed 6 May, 2008
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