CSR

Firms confronted on investment in Iran

A coalition that includes New York pension funds and CalPERS has called upon a number of major international companies to report on how they minimise risks of doing business with Iran.

Letters have been sent to eight companies with business ties to Iran, in connection with the significant involvement of these companies in Iran's defence or nuclear sectors and in the development of the country's oil and gas resources. These companies are being asked to describe the measures they have taken to mitigate risks to their stock price and reputation.

William Thompson, New York state comptroller, said: "Given the growing tension between the United States and Iran - a country the United States Department of State has designated a 'state sponsor of terrorism' - it is increasingly likely that the worsening situation and tightening economic sanctions will negatively impact companies doing business there.

"In addition, historically, regional conflict has exposed facilities and infrastructure to the risk of attack, as evidenced by the Iran-Iraq war of the 1980s".

The letters' signatories added that state divestment legislation is increasingly raising the prospect of investors having to divest from foreign companies that do business in Iran.

Letters have been sent to: Oil & Natural Gas, Royal Dutch Shell, Total, China Petroleum Company, Inpex, Gazprom, Respol and Eni. Responses from the companies are requested by 31 August.

August 2007