Investors File a Record 95 Global Warming Resolutions: A 40% Increase Over 2009 Proxy Season

Record Filings Follow SEC Calls for Stronger Corporate Attention to Climate Change

BOSTON, March 4 /PRNewswire-USNewswire/ -- Leading U.S. investors today announced that they have filed a record 95 global warming shareholder resolutions with 82 U.S. and Canadian companies that face far-reaching business challenges from climate change. The 40 percent increase in resolutions filed over last year is a first sign of the growing pressure on companies to disclose climate risks and opportunities in the wake of the recent Securities and Exchange Commission's climate disclosure guidance and other recent policy developments.

Companies targeted in the 2010 proxy season include some of the nation's largest coal companies, electric power and oil producers; homebuilders; big box retailers; financial institutions and other businesses that investors believe are not adequately disclosing and managing potential climate-related business impacts.

(See a complete list of the climate-related resolutions at http://www.incr.com/resolutions.)

Many of the resolutions filed aim directly at core materiality issues that were the foundation for the SEC's new interpretive guidance on climate disclosure.  Resolutions were filed with ExxonMobil and ConocoPhillips asking them to report on regulatory, legal and reputational risks, as well as environmental impacts, from their extensive Canadian oil sands operations. Both companies are spending many billions of dollars on oil extraction in Canada, which faces a slew of regulatory and legal challenges both in the U.S. and Canada. Oil sands production typically has a significantly higher carbon footprint compared to traditional oil production.

Other shareholder resolutions seek disclosure from electric utilities, including Southern Company, and coal producers, such as CONSOL and Massey, on their plans for adopting greenhouse gas reduction goals in anticipation of expected carbon-reducing regulations.

The resolutions were filed by many of the nation's largest public pension funds, as well as labor, foundation, religious and other institutional investors. Many of the investors are part of the Investor Network on Climate Risk (INCR), an alliance of more than 80 institutional investors with collective assets totaling more than $8 trillion.

"We want our companies to closely look at the impact climate change legislation and regulation have on them, to realistically assess those risks, and to consider the indirect consequences of climate change-driven regulation and business trends on their activities," said Jack Ehnes, CEO of CalSTRS, which manages $131 billion in assets. "The SEC's interpretive guidance outlines exactly the kind of action we have been asking our portfolio companies to take with regards to the issues raised by climate change. It fits with our role as a long-term investor focused on providing lasting value for the educators of California and their families."

"As the SEC recently affirmed with its disclosure guidance, climate change presents clear material risks and opportunities for U.S. businesses -- and investors have a right to know which companies are well prepared and which are not," said Mindy S. Lubber, president of Ceres, which helps coordinate the shareholder filings.

The SEC issued new interpretive guidance Jan. 27 that clarifies what publicly-traded companies need to disclose to investors in terms of climate-related material effects on business operations, whether from new carbon-reducing regulations in the U.S. and abroad, the physical impacts of changing weather or business opportunities associated with the growing clean energy economy. More than 50 investors managing $2.1 trillion in assets sent a letter to the SEC yesterday re-affirming their support for the SEC climate guidance. (See letter at http://www.ceres.org/Page.aspx?pid=1214.)

Other recent policy developments further bolster investors' requests for increased disclosure, including the Environmental Protection Agency's new mandatory greenhouse gas (GHG) reporting rule requiring some 10,000 facilities that are large sources of GHGs to report those emissions to the EPA, beginning data collection on January 1, 2010.

The U.S. House of Representatives passed strong climate and energy legislation in June 2009 that caps greenhouse gas emissions, and Senators Kerry, Lieberman and Graham are working to produce a bipartisan climate bill for Senate consideration within weeks. The EPA is also moving forward with issuing regulations on greenhouse gas emissions for automobiles and certain industrial sectors.

"Investors cannot remain silent to the threats of global climate change, which has the potential to negatively impact businesses and their long-term profitability. The New York State Common Retirement Fund wants the companies it invests in to more clearly assess and better manage the far-reaching risks of climate change," said New York State Comptroller Thomas P. DiNapoli, whose office oversees the state's $129.4 billion pension fund and filed resolutions with CONSOL and KBR.

"After decades of responding to shareholder concerns, corporations today are faced with new rules demanding transparency around risk, as well as new opportunities for growth in a green economy," said Sister Barbara Aires of the Sisters of Charity of St. Elizabeth, a member of the Interfaith Center on Corporate Responsibility (ICCR), which also helps coordinate the shareholder filings.

Investors have made significant progress with companies, successfully negotiating 28 withdrawals thus far this year after the companies made specific commitments in response to the resolutions.  A resolution seeking a report responding to rising pressure to reduce carbon emissions was withdrawn from the now-merged coal companies Alpha Natural Resources and Foundation Coal, for a first-ever withdrawal from a coal company. Resolutions concerning rainforest sustainability and deforestation issues were withdrawn with International Paper and Weyerhaeuser. A resolution seeking a report on legal and regulatory risks of First Nation opposition to a major pipeline project in the Canadian oil sands region was withdrawn with Enbridge.  For a full list of withdrawals, see www.incr.com/resolutions.

Among the dozens of companies with resolutions that are pending and could go to a vote at upcoming corporate annual meetings:

ConocoPhillips: CalSTRS, the nation's second-largest public pension fund, filed a resolution addressing the company's oil sands operations.  There are 19 co-filers for this resolution -- a clear signal that investors are concerned about the long-term risks associated with oil sands development.  Last year's oil sands resolution with the company received 30.3% voting support, which represented $12.8 billion worth of shares.  Oil sands extraction is energy- and carbon-intensive, and has significant impacts on air and water quality, among other issues.  Investors are asking ConocoPhillips for improved disclosure on how it is managing the significant risks associated with these impacts, including litigation and regulatory risks and water scarcity.  Lead filer: Brian Rice, CalSTRS, 916-414-7413

ConocoPhillips received two additional resolutions, one requesting the adoption of GHG reduction goals and the other requesting a climate risk report.

ExxonMobil: Green Century Capital Management filed the first oil sands resolution with ExxonMobil this year.  Exxon has greatly increased its investments in the oil sands over recent years through its stake in Imperial Oil and through ExxonMobil Canada, yet the company has not fully disclosed the financial risks of such a strategy.  Oil sands utilize a great deal of water, and water scarcity is an issue in the Athabasca River Basin where most projects are located.  In addition to physical risks, water pollution associated with the oil sands also pose regulatory risks.  Investors need to know how the company is assessing the many risks related to oil sands, including litigation, reputational, and regulatory risks, as well as market forces.  Lead filer: Emily Stone, Green Century Capital Management, 617-482-0800

Investors, including the Sisters of Charity of St. Elizabeth, re-filed a resolution with ExxonMobil requesting the adoption of quantitative GHG reduction goals.  Lead filer: Pat Daly, Tri-State Coalition for Responsible Investments, 973-509-8800

Southern Company: Southern Company, one of the largest producers of electricity in the nation, is the second-largest emitter of carbon dioxide among U.S. power generators.  Southern received two resolutions this year, one asking for quantitative GHG reduction goals and one asking for a report on the hazards of coal waste disposal -- a new type of resolution this year.  Several of Southern's industry peers have set total GHG emissions targets. The Sisters of Charity of St. Elizabeth re-filed the resolution in hopes that the company will develop a cohesive business plan for managing its climate risks and opportunities.  The coal ash resolution with Southern is one of five such resolutions this year.  Lead filer Green Century Capital Management has withdrawn similar resolutions with First Energy and Xcel Energy.  Burning coal for electricity creates over 130 million tons of coal ash, which is the second largest waste stream in the country.  Southern operates at least 22 coal combustion waste (CCW) impoundment facilities, which pose serious hazards and are pending regulatory action by the EPA. Lead filer: Emily Stone, Green Century Capital Management, 617-482-0800

Investors also filed climate and energy-related resolutions with the following companies.  These resolutions are still pending and could go to a vote:

Agriculture / Forestry: International Paper (NYSE: IP), RR Donnelley (NASDAQ: RRD), Weyerhaeuser (NYSE: WY)

Buildings / Energy Efficiency: Boston Properties (NYSE: BXP), CVS Caremark (NYSE: CVS), Federal Realty Investment Trust (NYSE: FRT), Home Depot (NYSE: HD), Kimco Realty Corporation (NYSE: KIM), Kroger (NYSE: KR), Lennar (NYSE: LEN), Lowe's (NYSE: LOW), MGM Mirage (NYSE: MGM), NVR (NYSE: NVR), Ryland (NYSE: RYL), Safeway (NYSE: SWY), Standard Pacific (NYSE: SPF), Target (NYSE: TGT), The TJX Companies (NYSE: TJX), Toll Brothers (NYSE: TOL), Walmart (NYSE: WMT), Wynn Resorts (NASDAQ: WYNN)

Coal: CONSOL Energy (NYSE: CNX), International Coal Group (NYSE: ICO), Massey Energy (NYSE: MEE)

Electric Power: CMS Energy Corporation (NYSE: CMS), Dynegy (NYSE: DYN), MDU Resources Group (NYSE: MDU), Mirant Corporation (NYSE: MIR), The Southern Company (NYSE: SO)

Finance: American Express (NYSE: AXP), JPMorgan Chase (NYSE: JPM), SunTrust Banks (NYSE: STI)

Oil & Gas: BP (NYSE: BP), Chesapeake Energy (NYSE: CHK), Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), EQT Corporation (NYSE: EQT), ExxonMobil (NYSE: XOM), Shell (NYSE: RDS.A), Valero Energy (NYSE: VLO)

S&P 500 / Other: 3M (NYSE: MMM), AK Steel (NYSE: AKS), Apple (NASDAQ: AAPL), Aqua America (NYSE: WTR), C.R. Bard (NYSE: BCR), Eagle Materials (NYSE: EXP), Expedia (NASDAQ: EXPE), Gentex (NASDAQ: GNTX), KBR (NYSE: KBR), Layne Christensen Company (NASDAQ: LAYN), SanDisk Corporation (NASDAQ: SNDK), St. Jude Medical (NYSE: STJ), Team (NASDAQ: TISI), Vulcan Materials (NYSE: VMC)

Canadian: Great-West Lifeco (TSE: GWO), Viterra (TSE: VT)

Ceres is a leading coalition of investors, environmental groups and other public interest groups working with companies to address sustainability challenges such as global climate change. Ceres also directs the Investor Network on Climate Risk, a network of 80 institutional investors with $8 trillion of collective assets focused on the business impacts of climate change. For details, visit http://www.ceres.org or http://www.incr.com.

For nearly 40 years the Interfaith Center on Corporate Responsibility (ICCR) has been a leader of the corporate social responsibility movement. ICCR's membership is an association of 275 faith-based institutional investors, including national denominations, religious communities, pension funds, foundations, hospital corporations, economic development funds, asset management companies, colleges, and unions. Each year ICCR-member religious institutional investors sponsor over 200 shareholder resolutions on major social and environmental issues.  For more information, visit http://www.iccr.org.

CONTACT:  Meg Wilcox, Ceres, 617-247-0700 X148, [email protected],; Peyton Fleming, Ceres, 617-733-6660 cell, [email protected],; and Leslie Lowe, ICCR, 212-870-2623, [email protected]

SOURCE Ceres, Boston, MA; Interfaith Center on Corporate Responsibility, NYC