Shareholders mull more chem-safety resolutions

29 April 2008 21:53  [Source: ICIS news]

HOUSTON (ICIS news)--Shareholders of US corporations will consider 21 resolutions that address the safety of chemical products, up 62% from the same time last year, representatives of an investment network said on Tuesday.

The Investor Environmental Health Network is made up of investment managers who oversee more than $41bn (€26bn) in assets. Members include the Calvert Group, Domini Social Investments and Sierra Club Mutual Funds.

Many of the network's members filed the resolutions. The topics of this year's resolutions include brominated flame-retardants, nano-materials, perfluoro octanoic acid (PFOA), polyvinyl chloride (PVC) and pesticides.

Many of the resolutions ask the companies to identify their products that contain the chemicals and how they would address any potential safety concerns. Other resolutions propose phasing out the chemicals.

"The good news for investors is that the pressure is paying off," said Richard Liroff, executive director of the network. Out of this year's 21 resolutions, 11 have been pulled after favourable responses from the corporations, he said.

"What we are seeing is that investors and businesses are waking up to the fact that the threats posed by chemicals erode the company's bottom line," Liroff said.

"The polycarbonate (PC) bottle collapse vividly illustrates why they should avoid questionable products," Liroff said. "There is a long-term strategic issue that goes beyond short-term news headlines."

Retailers such as Wal-Mart are pulling PC baby bottles from their shelves over concerns over bisphenol-A (BPA), a feedstock for the plastic.

The retailers acted on their own, and not as the result of new federal regulations concerning BPA.

"This is a poster child of the issue," Liroff said. "It really drives home that companies can fall down on compliance with existing laws."

Retailers want to protect their brands, especially when those brands are connected to baby products, he said. "Retailers see what is going on. They have a lot of investment in brand reputation."

At the same time, new markets can open up for companies that anticipate public concerns, Liroff said.

Eastman Chemical is marketing Tritan as an BPA-free alternative to PC.

"Our objective here is to help companies, spur them, if necessary, through shareholder resolutions, to see opportunities in managing risk," said Bennett Freeman, senior vice president of social research and policy at the Calvert Group.

($1 = €0.64)

For more on BPA and PVC visit ICIS chemical intelligence

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Author: Al Greenwood
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