New York State Common Retirement Fund, Albany, is divesting $86.2 million in investments from nine companies that conduct business in Iran or Sudan to protect the $109.9 billion system from risks tied to genocide and terrorism, said State Comptroller Thomas DiNapoli, the fund's sole trustee.
The companies are Gazprom; INPEX; Lukoil; Oil & Natural Gas Corp.; OMV Group; Petroleo Brasileiro; StatoilHydro; Wartsila Oyj; and Sinopec. Mr. DiNapoli said the action also includes subsidiaries of these companies.
It's the first time the fund has divested from companies linked to specific countries, Mr. DiNapoli said June 30 in a news conference.
The fund's external equity managers were told to reallocate the assets to “responsible investments that are economically indistinguishable.” Mr. DiNapoli did not disclose specific positions or funds holding the investments.
Mr. DiNapoli said the fund conducted a two-year investigation into defense and energy companies doing business in Iran and Sudan. After identifying companies in which the fund was invested, Mr. DiNapoli said his office requested explanations related to how their business activities in Iran or Sudan were “consistent with a sound and prudent long-term investment strategy,” as well as the steps they had taken to mitigate risks posed by doing business in those countries.
“These companies either failed to respond to our requests or did not provide adequate responses,” Mr. DiNapoli said.
Another seven that do business in Iran or Sudan are being monitored, and the fund is prohibiting any additional investments in these firms: Eni; Repsol YPF; Royal Dutch Shell; Total; ABB; Alstom; and Snam Rete Gas.
Mr. DiNapoli said his office would be looking into a broader list of companies, including telecom equipment maker Nokia Siemens Networks, which sold technology to Iran that allowed the country to monitor its citizens' cell phones.
