After Ford Takes Historic Step, GM Faces Shareholder Vote Next Week Seeking a Comparable Plan for a Major Cut in Greenhouse Gas
27 Mai 2008 - 10:32PM
PR Newswire (US)
June 3rd GM Shareholder Vote Follows April Withdrawal of Similar
Resolution at Ford, Which Agreed to Specific GHG Cut Target; GM
Faces Other Resolutions on Political Contributions and Health Care
Reform. DETROIT and NEW YORK, May 27 /PRNewswire-USNewswire/ --
Ford (NYSE:F) joined religious and other institutional shareholders
to announce on April 9, 2008 that it 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. Two months later, General Motors (NYSE: GM), which
has not yet taken such an action, will face on June 3, 2008 a
shareholder resolution calling for a comparable plan for a
greenhouse gas emissions cut. The GM resolution is filed by the
Sisters of St. Dominic of Caldwell, N.J. and 14 other members of
the Interfaith Center on Corporate Responsibility (ICCR). The
resolution also has the support of many institutional investors
that are members of the $5-trillion Investor Network on Climate
Risk (INCR), including CalPERS and the New York City Comptroller's
Office, as well as the support of proxy advisory firms such as
RiskMetrics. GM also faces a shareholder resolution on political
contributions (five filers including Catholic Healthcare West,
United Methodist board of Pensions & Health Benefits and
Trillium Asset Management) and health care reform principles (three
filers, including the National Ministries of the American Baptist
Churches and Trinity Health, a health-care system based in Novi,
Michigan.). 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: "Ford has set the bar at a high level for the auto
industry. It has done the hard work of scenario planning and
developing models to insure future profitability and reduced
emissions. GM needs to wake up to the fact that a clear business
plan to reduce emissions is critical for the long-term
profitability of any auto company." The GHG emissions resolution
reads in part: "GM has consistently applied new technology to their
vehicles but has failed to steer technology toward reducing GHGs,
giving GM the largest product 'carbon burden' of automakers selling
vehicles in the U.S....Our company is suffering financially in part
because competitors are making more compelling fuel efficient and
low-pollution products, causing a recent alarming loss of market
share in this era of higher oil prices. In order to protect and
enhance long-term shareholder value, GM must retake market share
from its competitors. The company needs to set quantitative goals
for improving fuel efficiency and reducing GHG emissions in its
products and operations to bring customers back...[S]hareholders
request that the Board of Directors publicly adopt quantitative
goals, based on current and emerging technologies, for reducing
total greenhouse gas emissions from the company's products and
operations; and that the company report to shareholders by
September 30, 2008, on its plans to achieve these goals." 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. Laura Berry, executive director,
Interfaith Center on Corporate Responsibility said: "GM must
recognize that Ford's leadership in this area has emerged as a new
corporate governance standard on climate. ICCR members continue to
demonstrate that long-term and persistent engagement by
institutional investors continues to transform how corporations
solve problems and navigate difficult new challenges. This approach
is effective in addressing concerns in all aspects of corporate
performance -- environmental, social, ethical and financial." Mindy
Lubber, president of Ceres and director of the Investor Network on
Climate Risk, which helped coordinate the resolutions, stated,
"With rising gas prices, tougher fuel-economy standards and
foreseeable climate legislation, GM faces tremendous challenges.
Investors need to see that GM has a strategic plan and a strong
commitment to address these trends while positioning itself to take
advantage of the numerous emerging opportunities." The GHG
emission, political contributions and healthcare resolutions are
available online at http://www.iccr.org/. A record 54 global
warming shareholder resolutions have been filed with U.S. companies
as part of the 2008 proxy season, which is nearly double the number
filed two years ago. Companies targeted with resolutions include
electric power companies, oil and coal producers, airlines and
other businesses that investors believe are not adequately dealing
with potential climate-related business impacts, whether from
physical changes, emerging climate regulations or growing global
demand for low-carbon technologies and services. This year's
filings come on the heels of a record high number of resolutions
and record high voting support for global warming resolutions in
the 2007 proxy season. Investors filed 43 resolutions with U.S.
companies last year and average voting support was 21.6 percent.
The shareholder filings are coordinated by the Interfaith Center on
Corporate Responsibility and the Ceres investor coalition. Personal
vehicle use accounts for nearly 20 percent of CO2 emissions
domestically and represents the second-largest source of greenhouse
gas emissions in the U.S. From 1990 to 2006, transportation-related
GHG emissions rose by 28 percent due in part to increased travel
and a vehicle sales mix that included a significant percentage of
larger vehicles. 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. ABOUT CERES AND INCR Ceres is a
leading coalition of investors, environmental groups and other
public interest organizations working with U.S. companies to
address sustainability challenges such as climate change. Ceres
also directs the Investor Network on Climate Risk (INCR), a group
of 60 institutional investors with collective assets totaling $5
trillion focused on the business impacts of climate change. For
more information, visit http://www.ceres.org/ or
http://www.incr.com/. DATASOURCE: Interfaith Center on Corporate
Responsibility, New York City; CONTACT: Sister Patricia Daly,
+1-973-670-9674, for Sisters of St. Dominic of Caldwell, NJ; or
Scott Stapf, +1-703-276-3252, , for the Interfaith Center on
Corporate Responsibility Web Site: http://www.ceres.org/
http://www.iccr.org/
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