Berkshire Hathaway Inc. shareholders were advised by Proxy Governance to vote against a shareholder proposal calling for Sudan divestment, including holdings in PetroChina Co. Ltd., according to a report issued by the proxy-voting advisory firm. Berkshire Hathaway owns 1.3% of PetroChina, valued at $3.3 billion,
The proxy-voting advisory firm is recommending against this proposal, with reservations, the report said. At this time, we are not convinced that divestment is the only appropriate course of action. Nevertheless, we are concerned that the company does not fully understand the risks to its reputation from what is a relatively minor portfolio investment. We urge the company to reassure its shareholders that it intends to use its role as a shareholder in PetroChina for constructive engagement to influence Sudanese policies in ways that might improve the situation in Darfur.