Southern, Massey Energy and Chevron Among Nine
"Climate Watch" Companies Targeted by Investors

 

U.S. Companies Face Record Global Warming Resolutions Amid Growing Support in Washington for Clean Energy and Mandatory CO2 Limits.

BOSTON, MA///February 18, 2009///Leading U.S. investors today named nine companies to a Climate Watch List, citing concerns that the firms are lagging behind their industry peers and are potentially undermining their long-term competitiveness in responding to the business challenges from global climate change. Investors filed shareholder resolutions with eight of the nine companies – and 49 other businesses – aimed at improving their focus and attention to the financial risks and opportunities from climate change.

The Climate Watch companies include influential coal companies, oil and power producers and other businesses that investors believe are not adequately dealing with climate-related business impacts, whether from physical changes, emerging climate regulations or growing global demand for low-carbon technologies and services. Two of the oil companies were targeted for extensive investments in Canada’s oil sands region, where carbon-intensive extraction technologies are being used to produce more than one million barrels of oil each day.

The resolutions are among a record 63 global warming resolutions filed with 56 U.S. companies and one Canadian company as part of the 2009 proxy season. The resolutions, seeking greater disclosure from companies on their financial exposure and response strategies to climate-related business trends, were filed by some of the nation’s largest public pension funds, as well as labor, foundation, religious and other institutional shareholders, who collectively manage more than $1.9 trillion in assets. The shareholder filings are coordinated by the Ceres investor coalition and the Interfaith Center on Corporate Responsibility (ICCR), a group of faith-based investors.

The Climate Watch companies include: Electric Power: Southern; Coal: Massey Energy and Consol Energy; Oil & Gas: Ultra Petroleum, ExxonMobil, Chevron, and Canadian Natural Resources; Automotive: General Motors; and Home building: Standard Pacific.
  
“Companies in every industry, especially energy sectors, must assess and mitigate climate change risks,” said New York City Comptroller William Thompson Jr., whose office oversees $115 billion in pension fund assets and filed resolutions with electric power and coal companies. “Investors require full and transparent disclosure of the actions companies are taking to address the risks and opportunities of climate change, so that they can make informed investment decisions.”

 “These climate watch companies are ignoring a major business trend that will influence their competitive positioning for years to come,” added Mindy S. Lubber, president of Ceres, a coalition of investors and environmental groups. “Given the political shift in Washington, all companies should be minimizing climate risks and maximizing clean energy opportunities. Companies that miss this trend are setting themselves up to fail in the 21st century low-carbon economy.”

Investors announcing the Climate Watch List said the ongoing economic recession should not delay substantive business efforts to address rising global temperatures.

“Despite the unrelenting poor economic news, we know that taking care of our environment is also taking care of the world’s economy,” said Jack Ehnes, Chief Executive Officer of the California State Teachers’ Retirement System (CalSTRS), the nation’s second largest public pension fund which own shares in virtually all of the companies targeted with shareholder resolutions. “We can’t be distracted by short-term concerns at the expense of meaningful action to mitigate the impacts of climate change.”

The Climate Watch List includes two oil companies, Canadian Natural Resources Ltd. and Chevron, for their extensive involvement in Canada’s oil sands extraction project, a carbon-intensive undertaking that has attracted billions of dollars of investment and will be a key topic during President Obama’s visit tomorrow with Canada’s Prime Minister in Ottawa.

“Extraction of oil from oil sands is a risky proposition and will likely in the long term be a disaster for both investors and inhabitants of an increasingly warming planet,” said Margaret Weber, ICCR Board Chair and Adrian Dominican Sisters Coordinator of Corporate Responsibility. “Faith-based investors are mindful of the high externalized costs of oil sands to indigenous communities, to the boreal forest, to watersheds and to our children.”

The Climate Watch companies are as follows:

In addition to the Climate Watch companies, investors filed resolutions with the following other businesses. The list of investors filing resolutions with each of the companies can be found at http://www.ceres.org/resolutions or http://www.iccr.org.

In addition to the 63 climate resolutions, approximately 14 other resolutions were filed (or are likely to be filed) asking companies to provide a sustainability report to investors, which should include information about how the company is managing climate risk, among other social, environmental and governance issues.  In total, there are approximately 30 sustainability resolutions expected to be filed this year -- 16 of the resolutions were sufficiently focused on climate change to be included in the number of climate resolutions filed.  More information about these resolutions is available from Rob Berridge at Ceres, 617-247-0700 x117 (berridge@ceres.org).

ABOUT CERES

Ceres is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as climate change. Ceres also directs the Investor Network on Climate Risk, a group of 77 institutional investors and financial firms focused on the business impacts of climate change. For details, visit http://www.ceres.org or http://www.incr.com.

ABOUT ICCR 

The Interfaith Center on Corporate Responsibility 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:  Meg Wilcox, Ceres (617-247-0700 X148, or 617-319-6457 cell), Peyton Fleming, Ceres (617-247-0700 x 120 or 617-733-6660 cell), and Leslie Lowe, ICCR (212-870-2623).

You can listen to a recording of the February 18 telenews event here.