Disinvestment
Disinvestment refers to the use of a concerted economic boycott to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change. The term was first used in the 1980s, most commonly in the United States, to refer to the use of a concerted economic boycott designed to pressure the government of South Africa into abolishing its apartheid regime. The term has also been applied to actions targeting Iran, Sudan, Northern Ireland, Myanmar, Israel, China and Russia.
Examples
Industries
- Global Climate Coalition – Ford, General Motors, Texaco, Southern Company, Exxon, and other corporate members of the Global Climate Coalition – an industry group opposing the Kyoto Protocol – were the target of a national disinvestment campaign run by Ozone Action in 2000. According to The New York Times, when Ford Motor Company left the coalition, it was "the latest sign of divisions within heavy industry over how to respond to global warming". After that, between December, 1999 and early March, 2000, the GCC was deserted by Daimler-Chrysler, Texaco, the Southern Company and General Motors. The organization closed in 2002, or in their own words, 'deactivated'. People associated with the campaign were John Passacantando, who served as the executive director of Ozone Action, and Phil Radford, the then field director of the organization. Both men later served as the executive director of Greenpeace
- Tobacco industry
- Arms trade
- Fossil fuels industry
- Factory farming
Environment
Founder of the movement Bill McKibben, a researcher and academic from University of Victoria, and creator of the webpage 350.org stated: “If it is wrong to wreck the climate, then it is wrong to profit from the wreckage. We believe organizations that serve the public good should divest from fossil fuels”
Companies
- Talisman Energy - because of its status as the main Western oil company in Sudan in the early 2000s.
Nations
Iran
Eighteen American states have passed laws requiring the divestment of state pension funds from firms doing business with Iran.South Africa
The most frequently-encountered method of "dis-investing" was to persuade state, county and municipal governments to sell their stock in companies which had a presence in South Africa, such shares having been previously placed in the portfolio of the state's, county's or city's pension fund. Several states and localities did pass legislation ordering the sale of such securities, most notably the city of San Francisco. An array of celebrities, including singer Paul Simon, actively supported the cause.Many conservatives opposed the disinvestment campaign, accusing its advocates of hypocrisy for not also proposing that the same sanctions be leveled on either the Soviet Union or the People's Republic of China. Ronald Reagan, who was the President of the United States during the time the disinvestment movement was at its peak, also opposed it, instead favoring a policy of "constructive engagement" with the Pretoria regime. Some offered as an alternative to disinvestment the so-called "Sullivan Principles", named after Reverend Leon Sullivan, an African-American clergyman who served on the Board of Directors of General Motors. These principles called for corporations doing business in South Africa to adhere to strict standards of non-discrimination in hiring and promotions, so as to set a positive example.
Northern Ireland
There was also a less well-publicized movement to apply the strategy of disinvestment to Northern Ireland, as some prominent Irish-American politicians sought to have state and local governments sell their stock in companies doing business in that part of the United Kingdom. This movement featured its own counterpart to the Sullivan Principles; known as the "MacBride Principles", which called for American and other foreign companies to take the initiative in nondiscrimination against Roman Catholics by adopting policies resembling affirmative action. The effort to disinvest in Northern Ireland met with little success, but the United States Congress did pass a law requiring American companies with interests there to implement most of the MacBride Principles in 1998.Cuba
Though in place long before the term "disinvestment" was coined, the United States embargo against Cuba meets many of the criteria for designation as such — and a provision more closely paralleling the disinvestment strategy aimed at South Africa was added in 1996, when the United States Congress passed the Helms-Burton Act, which penalized owners of foreign businesses which invested in former American firms that had been nationalized by Fidel Castro's government after the Cuban revolution of 1959. The passage of this law was widely seen as a reprisal for an incident in which Cuban military aircraft shot down two private planes flown by Cuban exiles living in Florida, who were searching for Cubans attempting to escape to Miami.Sudan
During the late 1990s and early 2000s several Christian groups in North America campaigned for disinvestment from Sudan because of the Muslim-dominated government's long conflict with the breakaway, mostly Christian region of Southern Sudan. One particular target of this campaign was the Canadian oil company, Talisman Energy which eventually left the country, and was supplanted by Chinese investors.There is currently a growing movement to divest from those that do business with the Sudanese government responsible for genocide in Darfur. Prompted by the State of Illinois – the first government in the US to divest – scores of public and private-sector entities are now following suit. In New York City, Councilman Eric Gioia introduced a resolution to divest City pension funds from companies doing business with Sudan.
The divestment of assets implicated in funding the government of Sudan, in acknowledgment of acts of terrorism and genocide perpetrated in the Darfur conflict. In the United States, this divestment has taken place at the state level. It has also taken place at many North American university endowments, including Cornell University, Harvard University, Case Western Reserve University, Queen's University, Stanford University, Dartmouth College, Amherst College, Yale University, Brown University, the University of California, the University of Pennsylvania, Brandeis University, the University of Colorado, American University, University of Delaware, Emory University, and the University of Vermont.
The Sudan Divestment Task Force has organized a nationwide group which advocates a targeted divestment policy, to minimize any negative effects on Sudanese civilians while still placing financial pressure on the government. The so-called 'targeted divestment approach' generally permits investment in Sudan, and is thus radically different from the comprehensive divestment that ended apartheid in South Africa.
Under this approach, sponsored by State Senator Jacqueline Collins, public pensions are prohibited from investing in any corporation or private equity firm that conducts business in Sudan, unless authorized to do so by the U.S. Government.
Israel
Russia
Several companies, such as oil giants BP and Shell, have disinvested from Russia following the 2022 Russian invasion of Ukraine. TikTok, also as a result of the invasion, also no longer allows new posts to be published in Russian territory, and YouTube does not allow Russian-backed channels to be monetised on the platform.China
In January 2020, students at University of California, Los Angeles passed a resolution calling for divestment from China. In August 2020, Under Secretary of State Keith Krach called upon university administrators in the United States to divest their endowments from companies in China. In the letter, Krach cited an open letter released nationally in May 2020 by College Democrats and College Republicans that was written by the student-organized Athenai Institute, and numerous other organizations and individuals which called for the disclosure of all ties "between centers of higher learning and all Chinese state agencies and proxies".In October 2021, students at The Catholic University of America unanimously passed a resolution, with the Athenai Institute calling upon their university administration to divest its endowment from companies complicit in the genocide of Uyghurs conducted by the Chinese government. This resulted in Catholic University committing to audit and divest its endowment, becoming the first university in the world to do so. According to Washington Post columnist Josh Rogin, this action marked the beginning of the "Uyghur Genocide University Divestment Movement". Following this, the Advisory Committee on Investor Responsibility at Yale University committed to examine potential investments in Chinese companies tied to human rights abuses. In January 2022, students at Georgetown University circulated an open letter calling for divestment from China. The letter was supported by a coalition of Georgetown's College Democrats, College Republicans, Muslim Student Association, Hong Kong Student Association, as well as individuals. Following this, the Georgetown University Student Association introduced and unanimously passed a resolution calling upon the university to divest its endowment. Similar action was taken by a coalition of students at the George Washington University in February 2022.