Results of NewReport Showing Economic Benefits of Strong MPG

Strong fuel efficiency/GHG standards would create nearly 700,000 jobsnationwide, including 63,000 jobs in auto sector; Consumers would save $152billion at the pump

BOSTON – As President Obama announces the nextround of a coordinated national program to improve fuel efficiency for model year2017-2025 cars and light-duty trucks, Ceres, a national coalition ofinvestors and public-interest organizations, today released “More Jobs PerGallon,” an economic analysis by the independent firm Management InformationServices, Inc. that quantifies what stronger fuel economy/GHG standards wouldmean for the U.S. economy.  

“We commend the Obama Administration on today’s importantstep to boost fuel economy and reduce vehicle emissions, which will createjobs, drive innovation, save consumers money and reduce our dependence onforeign oil,” said Mindy S. Lubber, president of Ceres. “Our report makes clearthat the stronger the standards, the greater the economic benefits, and we urgethe Administration to ensure a strong national program.”

Ceres’ new report, available at www.ceres.org, evaluated different regulatoryscenarios under consideration for CAFE mileage and GHG emissions improvements –specifically, improvements of three, four, five and six percent per year for modelyears 2017-25.

Among the report’s key findings:

·     The sixpercent scenario (roughly 60 MPG) would generate an estimated $152 billion infuel savings for consumers in 2030 compared to business as usual. Of the$152 billion saved at the pump, $59 billion would be expected to be spent inthe auto industry as drivers purchase cleaner, more efficient vehicles. Theremaining $93 billion will be spent across the rest of the economy, boostingconsumers’ discretionary income for everything from retail purchases to restauranttrips to increased spending on health care.

·     Nearly700,000 new full time jobs would be created under the six percent scenario, compared to only about 350,000 jobsunder the three percent (roughly 47 MPG) scenario.

·     63,000new, full-time domestic auto industry jobs would be created in 2030 under thesix percent scenario; more than double the 31,000 jobs under the threepercent scenario.

·     Statesseeing the biggest gains in terms of relative impact on their job markets alsohave some of the largest auto industry sectors.  Again, job growth would be significantly higher underthe six percent scenario.  The top12 states in terms of percentage job increases include Indiana, Michigan,Alabama, Kentucky, Tennessee, Ohio, North Carolina, New Hampshire, Vermont, Oregon,New York and Missouri.

·     Net jobsgains in 49 states, and greatest job gains under strongest standards. Eachof the four regulatory scenarios analyzed would bring substantial economic andjob benefits for the U.S. economy in 2030.

·     Effectson state GDPs would be overwhelmingly positive. States seeing the biggestpercentage GDP gains under the strongest fuel efficiency standard have largeauto industry sectors. The biggest gainers would be Michigan and Indiana,followed by Kentucky, South Carolina, Tennessee, Wisconsin, Iowa, Ohio, Alabamaand Oregon. Comparedto the three percent scenario, the six percent scenario would bring 382,000more jobs, a $15.7 billion increase in gross economic output (sales), $10.3billion more in personal income, and $9.5 billon more in tax revenue for cash strappedfederal, state and local governments.

For more details and to read the full report, visit: www.ceres.org/more-jobs-per-gallon

April 07, 2011|By Lisa Wangsness, Globe Staff

Two orders of Boston-area nuns are among a small group of investors taking Goldman Sachs to task on executive compensation.

The Sisters of St. Joseph of Boston and the Boston province of the Sisters of Notre Dame de Namur are two of four orders nationally that have signed onto a shareholder proposal asking the investment banking and securities titan to review the salaries of top executives and consider whether they are excessive and should be modified.

Sister Joanne Gallagher of the Sisters of St. Joseph said the filing comports with the order’s policy of promoting “justice, peace, and systemic change’’ in its investment activities.

The 2008 financial crisis provoked considerable public outrage about the compensation of top Wall Street executives and raised questions about their companies’ roles in creating the financial conditions that led to the meltdown. Last year, Goldman’s top five executives received compensation worth a total of almost $70 million.

The proposal, which will be considered at Goldman’s annual shareholders’ meeting on May 6, also asks the company to consider how layoffs and salary levels of low-wage workers affect the salaries of executives and how fluctuations in revenue affect the compensation pool, top-paid workers, and shareholders.

Shareholders overwhelmingly rejected a similar proposal last year.

Goldman opposes the filing. In its proxy statement, the company said shareholders “already have access to the information necessary to understand and assess the compensation decisions made with respect to our senior executives.’’ It added that generating the reports the filers seek would be a distraction to the firm’s compensation board.

Two other orders of Catholic nuns and Daniel Altschuler, an independent investor who is a fellow at Amherst College, have also joined the proposal. The effort was led by the Nathan Cummings Foundation, a New York-based nonprofit with a $400 million endowment that funds arts, culture, environmentalism, Jewish life, and other programs and uses its position as an institutional investor to encourage responsible corporate behavior.

All are associated with the Interfaith Center on Corporate Responsibility, whose 300 or so members use their status as investors to promote environmental responsibility, social justice, and sound corporate governance, including ending what it deems excessive executive pay.

Shareholder pressure can be effective. Goldman was among 100 or so companies asked by pension funds, trade unions, investment managers, and faith-based investors to give shareholders an opportunity to vote on the compensation of top executives. Goldman ultimately agreed; later, the so-called “say on pay’’ provision became part of the financial overhaul package passed by Congress.

Timothy Smith, senior vice president of Walden Asset Management, oversees the investment portfolios of the Sisters of St. Joseph and Notre Dame de Namur, as well as Altschuler. He said both orders own fewer than 100 shares of Goldman stock.

He said that even if the proposal does not pass, it has gotten Goldman’s attention. “The votes may not be large, but we believe this resolution and others are pushing the executive compensation committee to take those issues seriously,’’ he said.

Lisa Wangsness can be reached at lwangsness@globe.com.

Organizer: Ceres

Date: 05.11.11, 07:30AM – 05.12.11, 03:00PM

Location: Oakland, California

Sponsor: Ceres

Website: www.ceres.org/conference

HURRY! Room block for this event ends Sunday (4/17)!

Join us May 11-12 in Oakland, CA as we work together to accelerate corporate, investor and capital market solutions on global sustainability challenges.

Inspiring world business leaders are innovating to meet the urgent climate and resource challenges of the 21st century. They recognize the imperative, and opportunity, of building a sustainable global economy - and are filling the leadership vacuum left by our policymakers.

This year's Ceres conference is about igniting this leadership and innovation into something far bigger and impactful. It's about scaling up smart, sustainable technologies that use fewer resources and emit far less carbon pollution - and making those solutions more available and affordable across an ever-more populous world.

This year's plenary program is jam-packed with exciting speakers and provocative themes, including:

--A CEO Conversation with John Anderson, president and CEO of Levi Strauss, and Andrea Moffat, vice president of the corporate program at Ceres

--An opening keynote from Jim Woolsey, former CIA director and current senior advisor at VantagePoint Venture Partners, on the importance of a clean energy future

--A panel discussion about the race between the U.S. and China to develop a clean energy global economy, moderated by Liza Tucker, senior sustainability editor at Marketplace Radio, and featuring Dr. Zhengrong Shi, CEO of Suntech, Jon Krahulik, managing director and global head of Clean Technology Investment Banking at Bank of America Merrill Lynch, and Jiang Lin, senior vice president and director of the China Sustainable Energy Program at the Energy Foundation

--Engaging and relevant workshops, including one on energy efficiency financing and another exploring what’s needed to bring sustainable agriculture to scale

Please join fellow leaders in the corporate, investors, labor and NGO worlds as we develop the path forward to build a truly sustainable global economy. To learn more or to register, please visit www.ceres.org/conference.

by Robert Kropp

Ceres and Fund Votes conduct annual survey of voting by mutual funds on shareowner resolutions relating to climate change, and find they have declined for first time since 2007.

SocialFunds.com -- A report published earlier this year by Mercer declared that the economic cost of climate policy could lead to as much as a 10% increase in portfolio risk in the next 20 years. Responding to the report, Mindy Lubber, president of Ceres, stated, "No prudent investor can disregard a risk as great as 10 percent on portfolio performance."

Evidently, many of the nation's largest mutual funds appear to be doing just that, according to the sixth annual analysis of voting by 46 mutual funds on climate-related shareowner resolutions. The analysis by Ceres and Fund Votes, a project started in 2004 that tracks mutual fund proxy voting in the US and Canada, found that for the first time since 2007, overall voting in favor of such resolutions declined, to 23.8% from 26.9% in 2009.

Votes opposed to such resolutions increased for the first time since 2005, to 60%.

The analysis found that eight mutual fund families continued to support a majority of climate resolutions, led by the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), which voted in favor of such resolutions 82.6% of the time.

On the other hand, some of the nation's largest funds, including State Street and Vanguard, did not vote in favor of a single climate resolution. Fidelity voted in favor of such resolutions in just 1.6% of 246 total votes. According to the report, 27 mutual fund companies supported less than a quarter of climate resolutions.

"One possible reason for diminished support could be that mutual fund managers perceived reduced regulatory risk as the prospects for passing a federal climate bill dimmed during the 2010 proxy season," the report stated.

The report recommended that investors encourage mutual funds to update their proxy voting guidelines, and consider switching to investment managers that better understand the risk to portfolios presented by climate change.

"Investors can also outsource the voting of their proxies" through such sites as Moxy Vote, the report concluded.

"Large fund families know, just as we do, that climate change is a real and material risk," Jackie Cook, founder of Fund Votes, stated. "Yet their proxy voting guidelines are silent. Climate and sustainability are central to performance and need to be specifically addressed in voting policy reviews."

Lubber of Ceres stated, "All mutual funds should develop and follow proxy voting guidelines to respond to the very real risks and opportunities of climate change. Those that do stand to outperform their peers."

March 24, 2011

by Robert Kropp

Ceres announces that resolutions on water management filed with three electric utilities have been withdrawn after successful engagement.

SocialFunds.com -- Shareowner engagement with energy companies has increased markedly this year. In mid-February, Ceres announced that resolutions addressing climate and energy had increased by 50% over 2010 totals, with 66 such proposals having been filed with 41 companies.

The resolutions include 29 filed with 19 electric power companies, addressing issues from water scarcity to management of greenhouse gas (GHG) emissions and mountaintop removal. Water scarcity in particular has gained increasing attention recently, as concerns about the effects on the resource by climate change and population growth led the Carbon Disclosure Project (CDP) to launch its CDP Water Disclosure project.

According to a press release this week from Ceres, "Prolonged droughts, growing water demand and climate change place increasing stress on water supplies and create challenges for electric power producers in many parts of the United States."

"Power plants, including nuclear, coal, oil and natural gas, account for 40 percent of the nation’s freshwater withdrawals, requiring an estimated 136 billion gallons a day for generating and cooling the steam that drives electric turbines," the release continued.

Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk, stated, "Water scarcity is a growing risk to many public utilities and investors want to know how companies are preparing for increased competition for supplies, emerging regulations and potential revenue losses from shortages."

In this week's press release, Ceres announced that coalitions of sustainable investors have succeeded in their engagements with three major electric utilities thus far, allowing the investors to withdraw shareowner proposals at those companies.

The Office of the Connecticut State Treasurer was the lead filer of a resolution at Atlanta-based Southern Company. The company has agreed to prepare a report "describing its water management philosophy, water use and consumption by generation type, water discharges, and emerging risks, including water risks in its fuel supply chain," according to Ceres.

A resolution filed at Virginia-based Dominion by Ceres was withdrawn when the company agreed to report to CDP Water Disclosure on its water management practices.

At PPL, a resolution filed by Miller/Howard Investments persuaded the company to include information on water intensity, water resources and cooling system types, and water rights in its corporate social responsibility (CSR) reporting.

Resolutions still on proxy ballots include a request that First Energy report on efforts to reduce water risks from its coal ash operations. In addition, a number of resolutions still outstanding address hydraulic fracturing, a drilling process which requires the injection of as much as 7.5 million gallons of water per well, as well as often toxic chemicals, to crack open rock and allow natural gas to flow to the surface.

Read the original article here.