Dutch pension fund giant PGGM may divest from Chinese oil firm Petrochina over its state-owned parent company’s Sudan operations, following public pressure over Sudan-linked investments.

A spokesman confirmed that the fund has been engaging with Petrochina officials since August over environmental and human rights issues linked to its activities in Sudan, where conflict in Darfur continues unabated.

The €88bn pension fund, the second-largest in the Netherlands, is also in talks with the Indian Oil and Natural Gas Company (ONGC), according to a statement released on PGGM's website.

The fund's approach is to first engage in a dialogue with companies on issues concerning human rights, environmental concerns, social welfare and governance. Only if there is a link to weapons of mass destruction does PGGM divest immediately.

However, the fund said it would withdraw its investments if Petrochina and ONGC do not change their conduct.

PGGM is not the first to put pressure on Petrochina for its widely-criticised dealings in Sudan. ABP, although not having any direct investments in Sudan, has addressed ‘the Sudan question’. A letter has been sent to two companies ABP is a shareholder in, to request more information on their Sudan policy.
In June, IPE reported the €44bn UK Universities Superannuation Scheme (USS) also faced pressure from campaigners to divest its shareholding in Petrochina over its state-owned parent company’s Sudan operations. At the time, USS equities manager Jason Fletcher ruled out screening Petrochina – or any other company – from the fund, arguing “our policy is has one of engagement, not exclusion".

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