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Boston,
MA, November 16, 2005 -- KLD Research & Analytics, Inc.,
announced today
the launch of its Sudan Compliance Service to help money
managers who are increasingly being required to divest
companies doing business in the Sudan. KLD's Sudan Compliance
Service identifies publicly traded companies worldwide
- more than 120 companies - doing business in the Sudan
and explains why they are on the list.
KLD created
its Sudan Compliance Service in response to the growing
Sudan divestment movement. The ongoing genocide in Darfur
has spurred several states to pass Sudan divestment legislation,
which bars state pension funds from investing in companies
doing business in the Sudan.
The first
state to pass Sudan divestment legislation was Illinois.
Its public pension funds, whether invested internally
or through outside money managers, must divest companies
operating in Sudan by the end of January 2006. Louisiana,
Oregon, and New Jersey have followed suit with similar
legislation in the past year. The Massachusetts, New York,
Vermont, Indiana, and Ohio legislatures currently have
Sudan divestment bills pending in their states.
"The
Sudan poses compliance problems for money managers similar
to those in the 1980s when public pensions and university
endowments divested companies doing business in South
Africa," said Peter D. Kinder, president of KLD Research
& Analytics, Inc.
KLD's
Sudan Compliance Service
The
Sudan Service is the newest offering from KLD Compliance,
the leading system used by money mangers and investors
for portfolios with qualitative socially responsible investment
(SRI) mandates. "Our
clients expressed a need for an authoritative list with
supporting data," said Mr. Kinder. "The new
service meets that need."
KLD's
Sudan Compliance Service is updated twice a month and
may be customized to fully comply with specific state
legislation (such as Illinois Public Act 0043-0097). Some
of the more than 130 companies with investments in the
Sudan include:
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-Alcatel,
the French telecommunications firm that was awarded
a contract to lay the undersea cable linking the
Sudan with Saudi Arabia;
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-Total
SA, the Franco-Belgian oil company which regularly
renews its rights to the Block B oilfield located
in southeastern Sudan; and
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-Siemens
AG, the German technology company which contracted
with the 50 percent state-owned Sudanese Telecommunications
Company to expand telecommunications networks and
integrated digital services in the Sudan.
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At present, mainly
non-US companies are invested in the Sudan.
"KLD's
Sudan Compliance Service is an important addition to our
portfolio of compliance products and services for money
managers," Kinder explained. "Our clients look
to KLD to provide the comprehensive, authenticated lists
on which they can rely for their compliance needs."
History
of Sudan Divestment
In
1997, Congress passed sanctions that prevented US companies
from doing business in the Sudan because of its support
of terrorism. Nonetheless, the NGO Divest Sudan has identified
81 US public pension portfolios with over $91 billion
in assets it believes are exposed to the Sudan.
Since
then, after worldwide attention focused on Darfur, a number
of state pensions and universities have moved on companies
operating in Sudan.
On
August 26, the comptroller of New York City sent letters
to companies that the City pension funds are invested
in, requesting they review their business ties to the
Sudan. The New York City comptroller estimates that the
City has $209.9 million invested in companies doing business
in the Sudan.
In
April 2005, Harvard University sold its $4.4 million stake
in PetroChina Co., a company engaged in oil exploration
in the Sudan. Student-led divestment campaigns have also
begun on campuses including Stanford, University of California,
Duke University and the University of Pennsylvania.
About
KLD Compliance
KLD Compliance, a
comprehensive approach to ensuring compliance with client
mandates, covers the global universe of publicly trade
companies on over 50 social and industry restrictions.
KLD compliance easily integrates into most trading and
compliance systems. Since 1998, KLD Compliance has provided
money managers with a comprehensive approach to the social
restriction mandates of their clients.
Based
on the same social, environmental, and governance data
powering KLD's SOCRATES database and Domini 400 SocialSM
Index, KLD Compliance can cover the global publicly traded
universe of companies on more than 25 distinct social
restrictions ranging from the environment and human rights,
to nuclear power and tobacco.
KLD Compliance provides
money managers with:
- Integration:
Social restriction data integrated directly into compliance
and trading systems
- Automation:
Compliance information delivered monthly on the first
business day without manual intervention
- Customization:
25 criteria with over 350 different variations which
KLD will tailor to meet investment mandates
- Accuracy: Data reviewed
on a daily basis to ensure KLD Compliance is current
and accurate
About KLD Research
& Analytics, Inc.
KLD
Research & Analytics, Inc. is an independent investment
research firm providing investment management tools used
by professionals to serve clients requiring investment
strategies based on social and environmental responsibility.
Since
1988, institutional investors, managers, trustees, consultants
and advisors have depended on the quality and expertise
of KLD. Institutional money managers worldwide use KLD's
research to integrate environmental, social and governance
factors into their investment decisions.
KLD products and services,
including SOCRATES (a web-based, company research tool)
are used for screening, compliance and asset gathering.
For
more information about KLD or KLD's Sudan Compliance Service,
please see KLD's website (www.kld.com)
or contact Randy O'Neil
by phone (617.426.5270 ext.292) or via e-mail (roneil@kld.com).
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