Faith-Based Investors: Bailout Should Focus on Shifting Industry's Gears
To More Fuel-Efficient Vehicles, Not Just Short-Term Survival
Filers of Over 300 Auto-Related Shareholder Resolutions Since 1972 See Ford As Better Positioned than GM for Carbon-Constrained Future
NEW YORK, NY//December 5, 2008///If Congress decides to bailout the U.S. auto industry, the focus should be on moving automakers to produce more fuel-efficient vehicles, as opposed to merely extending a short-term lifeline to the industry, according to the Interfaith Center on Corporate Responsibility (ICCR) ICCR is a coalition of nearly 300 faith-based institutional investors, representing over $100 billion in invested capital.
Faith-based investors also noted that Ford may be better positioned to move forward and thrive than General Motors. That observation is based on the handling of more than 300 auto-related resolutions filed by ICCR members between 1972‐2009, specifically on the need to improve automotive standards, creating a healthier environment and move to sustainable corporate practices.
Sister Patricia A. Daly, OP, executive director, Tri-State Coalition for Responsible Investment, and representative for the Sisters of St. Dominic of Caldwell, NJ, the lead resolution filer, said: “The problematic issues facing U.S. auto makers have been apparent to religious investors for many years. For more than a decade now, we have felt that it is essential for American auto companies to significantly change their business models to produce the energy efficient vehicles that consumers want, and that will be necessary in a carbon-constrained world. Time after time Ford has lead the pack, specifically with its new business plan to implement measurable actions to reduce greenhouse gas emissions in products and operations. . Arguably, Ford’s initiative to roll out more fuel efficient vehicles has contributed to their improved financial standing today,”
Daly added: “Regardless of how Congress responds to the auto industry this week, our lawmakers will only be fiscally responsible if they deliver policy that incentivizes fuel efficient transportation for both consumers and industry.”
Laura Berry, executive director, Interfaith Center on Corporate Responsibility said: “ICCR’s model of long-term and persistent engagement by institutional investors who, as fiduciaries, are concerned about all aspects of corporate performance – environmental, social, ethical and financial – is beginning to transform how corporations solve problems and navigate difficult new challenges. Ford’s leadership in this area is one example of emerging leadership. Their commitments are beginning to establish a new corporate governance standard on climate. In today’s difficult business climate, this openness to new approaches may well determine who survives in the marketplace and who does not. These are clearly important issues to all investors”
On April 9, 2008, religious and other institutional investors joined with Ford Motor Co. in announcing that Ford is the first U.S. auto company to spell out how it plans to reach the goal of reducing by at least 30 percent the greenhouse gas (GHG) emissions from its new vehicle fleet by 2020. The decision by Ford to publish its emission target came in the wake of climate-related shareholder resolutions put forward by members of the Interfaith Center on Corporate Responsibility and the Investor Network on Climate Risk Network (INCR) organized by Ceres.
In March 2008, Ford presented concerned investors with a detailed analysis of its fuel emissions goals showing how the 30 percent emissions reduction would be achieved in a manner consistent with the 60-80 percent CO2 reductions by 2050 that Ford and dozens of other U.S. companies have agreed to as part of the U.S. Climate Action Partnership. Previously, the most any U.S. auto company has agreed to do on GHG emissions is to undertake enhanced reporting of climate-related impacts or set a general GHG goal without showing how it would be reached.
Beyond Ford, religious investors also urged General Motors to set specific greenhouse gas reduction targets for its vehicles and operations. However, GM has declined to do so to date.
ABOUT ICCR
The Interfaith Center on Corporate Responsibility (http://www.iccr.org) is a coalition of nearly 300 faith-based institutional investors, representing over $100 billion in invested capital. ICCR members bridge the divide between morality and markets by envisioning a civic economy that integrates ethical, environmental and social values. Inspired by faith, committed to action, ICCR members work to build a just and sustainable global community.
CONTACT:
Ailis Aaron Wolf (703) 276-3265 or aawolf@hastingsgroup.com.
Editor’s note: For a detailed breakdown of the resolutions by year, focus and targeted companies, contact Ailis Aaron Wolf at aawolf@hastingsgroup.com.