Activists push banks to help end Darfur woes

By Joseph A. Giannone - Analysis

NEW YORK (Reuters) - Human rights groups battling alleged genocide in Sudan's Darfur region and elsewhere have adopted a surprising new weapon: bank stocks.

In recent weeks, a coalition of human rights advocates and fund managers have used small stakes in six U.S. financial services companies to enlist their help in ending the crisis in Darfur. Since February 2003, hundreds of thousands of civilians in Sudan's western region have been killed and 2.5 million have been displaced by Sudan's government.

Activists argue that banks, as investors and advisers, can lobby four oil companies generating the bulk of Sudan's revenue to put some pressure on Sudan's government.

"For the crisis to end in Sudan, a whole lot of levers have to be pushed. This is potentially the greatest lever and it has to be tried," said Shelly Alpern, director of social research at Trillium Asset Management, a Boston manager of socially responsible funds.

Last August, Amnesty International USA, fund manager Calvert Group and the Genocide Intervention Network assembled a coalition of investors that submitted resolutions at Morgan Stanley, Merrill Lynch & Co Inc, money manager T. Rowe Price Group Inc and commercial banks Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co.

The coalition called on the six to adopt policies that would limit investments linked to countries, such as Sudan, where genocide or mass atrocities take place.

In the case of Darfur, the strategy is getting four foreign oil companies -- China National Petroleum Corp, Malaysia's Petronas, Oil & Natural Gas Corp Ltd of India and China's Sinopec Corp -- to pressure Sudan.

"We want these banks to make a public statement to the crisis in Sudan, use their connections with the oil companies and we look for an ongoing commitment to the issues," said Amy O'Meara of Amnesty International USA. "As the primary revenue generating agents for Sudan's government, (the oil companies) have a unique and powerful influence."