Santa Barbara, CA

August 31, 2011

Contact: Jack Ucciferri

jack@harringtoninvestments.com

(805).770.2300

Harrington Investments Asks Monsanto to Help Investors Better Understand Risks of GMOs

Santa Barbara, California -- Harrington Investments, Inc. (HII) has announced the introduction of a shareholder resolution requesting that Monsanto Corporation publish a study on “material financial risks or operational impacts” associated with its products, especially genetically modified organisms (GMOs). The announcement underscores concerns about risks posed by GMO contamination of their crops.

“Just because the United States Department of Agriculture permits a product to be sold, does not mean that it is safe, and as costs of justifying and defending these products mount, investors need adequate information to assess associated financial risks themselves,” said John Harrington, President and CEO of Harrington Investments.

The resolution is timely given that Monsanto was sued in federal court earlier this year by eighty-three family farmers, small and family owned seed businesses, and agricultural organizations defending their right to seek legal protection from the threat of being sued by Monsanto for patent infringement, should their crops or property become contaminated by Monsanto's products, i.e. genetically modified organisms.

Considering previous multi-hundred million dollar settlements relating to GMOs, shareholders have reason to be concerned about the prospects of additional large lawsuits that may have an adverse impact on Monsanto shareholder value.

Paul Towers, Organizing & Media Director for Pesticide Action Network North America (PANNA), framed the issue as nothing more than investors asking Monsanto executives to abide by their own “Monsanto Pledge” which highlights corporate principles such as: Integrity, Dialogue, Transparency, Sharing, Benefits, Respect, and Acting as Owners to Achieve Results.

“If Monsanto wants to be taken seriously as a responsible corporate actor, the first step would be to take its own commitments seriously,” stated Mr. Towers. “Monsanto has a responsibility to protect farmers and shareholders from the threats of GMO contamination, and prepare for greater liabilities until the company changes its business direction.”

Pesticide Action Network North America works to replace the use of hazardous pesticides with ecologically sound and socially just alternatives. As one of five PAN Regional Centers worldwide, PAN North America links local and international consumer, labor, health, environment and agriculture groups into an international citizens’ action network.

Harrington Investments, Inc. is a 29 year-old socially responsible investment advisory firm that manages assets of individual and institutional investors requiring social and environmental as well as financial portfolio performance. From its Napa and Santa Barbara, CA offices, HII utilizes comprehensive social and environmental screens, commits clients' assets to community investing and engages in shareholder advocacy.

By Dale Wannen | March 23rd, 2011

In times when oil prices are on the brink of huge increases and radiation leaks from Japanese nuclear reactors seem out of control, natural gas is the latest panacea of energy companies looking for cheap, quick solutions. While energy providers are jumping on the natural gas bandwagon, impact investors are jumping off just as quickly due to environmental concerns like fracking.

Harrington Investments, Inc., an investment advisory firm specializing in socially responsible investing (and my employer), announced today that it is divesting its entire holding in Chesapeake Energy Corporation (CHK) due to the corporation’s poor environmental record and its lack of accountability to shareholders.

Recently, the Pennsylvania Environmental Protection Department cited over 40 natural gas well operators more than 900 times for “environmental health and safety” violations.   Leading this unworthy group with 109 citations was Chesapeake Energy.

“We have a fiduciary duty to our clients to invest in companies that show a strong commitment to the environment.  Chesapeake clearly fails to do so,” stated John Harrington, President of Harrington Investments, Inc.  “Chesapeake obviously violates our investment criteria when it consistently and flagrantly violates environmental standards.”

David Caruso of the Associated Press stated that the problem of fracking runs rampant in Pennsylvania.  In the vast underground rock formation known as the Marcellus Shale, Pennsylvania has been the only state allowing waterways to serve as the primary disposal place for the huge amounts of wastewater produced by this removal technique.  This has lead to numerous reports of contaminants in the drinking water of residents. 

Perhaps the most surprising act by the board occurred in 2008, when CEO Aubrey McClendon was awarded a $77 million bonus even though the stock price of Chesapeake fell 60 percent. Shareholders filed a lawsuit against McClendon, claiming the board of directors ignored the company’s compensation policies. McClendon was able to get the suit dismissed due to a technicality.

The board at Chesapeake Energy also has one of the worst records when it comes to executive compensation,” added Harrington. “Because of their continual disregard for shareholders interests and the environment, we are divesting all 56,025 shares of our clients’ assets in Chesapeake stock, valued at approximately $1.9 million.”

Nowhere is this unabashed political activism more evident than in Pennsylvania, where Chesapeake gave $377,319 in lobbying cash to state politicians from 2007-2009.  McClendon funneled $450,000 to gubernatorial candidate Tom Corbett via the State Republican Leadership Committee. Since Corbett’s victory, Chesapeake has obtained 839 Marcellus Shale drilling permits in Pennsylvania, more than any other company, and has drilled at 126 sites, making it the second-biggest operator in the region.

Read the original article here.