Middlebury, Vt.

Life in the middle of Vermont.

Monday, April 17, 2006

Climate Change Is Bad Business

At last even the business folks are waking up to what a catastrophe global warming will be unless we take sensibly drastic steps to stop it. This from Fortune (4-06), an establishment business publication if there ever was one:


Global Warming Could Melt Your Portfolio

by Marc Gunther, FORTUNE senior writer

A coalition of environmentalists and institutional investors lays out which companies will be better prepared for climate change.

NEW YORK (FORTUNE) - Long-term investors, take heed: Global warming will have a significant impact on the financial performance of companies in your portfolio.
Some companies -- General Electric, DuPont, Cinergy, American Electric Power, BP, Toyota and Honda -- are seriously grappling with the risks and opportunities posed by climate change. They will be better prepared as governments and shareholders focus on the issue.
Many others -- ExxonMobil, Dominion Power, Sempra Energy, Nissan, BMW and Volkswagen -- have been slow to address climate change, and they could put their owners at financial risk.

Those, at least, are the findings of a report released March 21, 2006 that takes a close look at how 100 of the world's largest companies are positioning themselves to compete in what's called a "carbon-constrained world" -- that is, a world in which emissions of greenhouse gases are regulated, as they are today in Europe and Japan and probably will be before long in the United States.

The report, which ranks the companies on a 100-point scoring system, comes from a group called Ceres, a coalition of environmentalists and institutional investors, including government pension funds, socially responsible mutual funds and religious investors, with $3 trillion in assets. It's worth checking out at www.ceres.org.

"Climate change is no longer a fringe issue, no longer an issue that can be ignored," said Mindy Lubber, the president of Ceres, at a news conference. "These trends present enormous risks and opportunities."

Political support for regulation of greenhouse gas emissions is growing both in Congress and in state governments. U.S. Sen. John McCain and New York Gov. George Pataki are among the Republican elected officials who support some form of carbon regulation. So do a growing number of CEOs, including GE's Jeffrey Immelt and Jim Rogers of Cinergy.

The risks posed by global warming aren't only regulatory. There's compelling evidence that world temperatures are rising, glaciers are melting and storms are becoming more fierce. Food, fishing and forestry businesses could all be affected, the report says.

The cost of natural disasters exceeded $225 billion in 2005, up from the previous record of $118 billion in 2004, according to reinsurance giant Swiss Re. A Swiss Re executive is quoted in the report as saying, "Global warming has accelerated from a problem that might affect our grandchildren, to one that could significantly disturb the social and economic conditions of our lifetime."

Much of the report delivers encouraging news. In 2003, Ceres surveyed 20 big firms and found that most were doing little about climate change. Since then, more corporate boards have addressed the issue and corporate thought leaders like GE's Immelt responded with new business strategies. GE's "EcoMagination" initiative includes a pledge to invest $1.5 billion annually in clean technologies by 2010, up from $700 million in 2004. GE thinks it can make money by selling wind turbines, more efficient locomotives and jet engines, among other products.

Other favorable developments cited by Ceres include Ford Motor's announcement that it will boost production of hybrid vehicles tenfold (albeit from a small base) by 2010, Chevron's promise to invest in alternative energy and curb its emissions, and American Electric Power's decision to build the nation's first so-called "clean coal" plant. Coal companies are especially threatened by proposals to regulate or tax carbon emissions.

DuPont, the leading scorer among U.S. companies, has already reduced its greenhouse gas emissions by 72 percent since 1990. It is developing and marketing an array of "green" products such as Tyvek insulation, energy-efficient refrigerants and corn-based raw materials that can replace plastic produced from oil.

William K. Reilly, head of the U.S. Environmental Protection Agency during the first Bush Administration and a DuPont director, said at a Ceres news conference: "We've already saved a significant amount of money by moving in this direction."

Ceres' Lubber noted that European firms BP, the top-scoring company overall, and Royal Dutch Shell scored highest in the crucial oil and gas sector. Japan-based Toyota and Honda led the way among automakers because of their commitment to hybrids. U.S. firms will face a competitive disadvantage if they don't improve their practices, she said.

ExxonMobil was singled out for criticism by Meredith Miller, the assistant state treasurer of Connecticut, because she said the company won't meet with investors to discuss climate change. Last year, nearly 30 percent of ExxonMobil's shareholders supported a shareholder resolution asking the company to disclose its plans for complying with greenhouse gas reductions targets in countries that have adopted the Kyoto Protocol, which regulates emissions.

ExxonMobil, which opposed the shareholder resolution as unnecessary, says it is currently seeking "economically competitive and affordable future options to reduce long-term global greenhouse gas emissions while meeting the world's growing demand for energy."

The issue clearly isn't going away. A flurry of new books focus on climate change. In May, Paramount Classics will release a documentary called "The Inconvenient Truth," about Al Gore's crusade to curb global warming. Silicon Valley technologists are taking the problem seriously, as this recent article explains.

Ceres has worked on the issue for years. The question is, how long will it take for mainstream investors and the laggards of corporate America to respond?


Blogger mgjn0zy67z said...

Get any Desired College Degree, In less then 2 weeks.

Call this number now 24 hours a day 7 days a week (413) 208-3069

Get these Degrees NOW!!!

"BA", "BSc", "MA", "MSc", "MBA", "PHD",

Get everything within 2 weeks.
100% verifiable, this is a real deal

Act now you owe it to your future.

(413) 208-3069 call now 24 hours a day, 7 days a week.

4:21 PM  
Blogger ninest123 said...

ninest123 16.01
true religion jeans, air max pas cher, longchamp, timberland, nike air max, converse pas cher, nike blazer, michael kors uk, vans pas cher, north face, sac guess, sac burberry, nike air force, ray ban sunglasses, polo ralph lauren, hollister, north face, true religion outlet, coach outlet store online, michael kors outlet, louboutin, lululemon outlet online, ralph lauren, abercrombie and fitch, true religion outlet, michael kors, true religion jeans, nike huaraches, air max, nike free, longchamp, oakley pas cher, michael kors pas cher, hollister, new balance pas cher, sac hermes, air jordan, nike roshe run pas cher, mulberry, hogan outlet, ray ban pas cher, replica handbags, nike tn, nike roshe, vanessa bruno, nike free pas cher, nike trainers, air max, sac longchamp pas cher, coach purses, polo lacoste

1:09 AM  
Blogger ninest123 said...

tory burch outlet, jordan shoes, oakley sunglasses, michael kors outlet, oakley sunglasses, michael kors outlet, chanel handbags, longchamp outlet, uggs outlet, ugg boots clearance, burberry outlet, tiffany and co, nike shoes, michael kors outlet online sale, louis vuitton, cheap uggs, prada outlet, oakley sunglasses, polo ralph lauren outlet, louis vuitton handbags, michael kors outlet, replica watches, ray ban sunglasses, nike free, ugg outlet, louboutin outlet, ray ban sunglasses, louis vuitton outlet, oakley sunglasses cheap, cheap oakley sunglasses, air max, tiffany and co, louis vuitton outlet, ray ban sunglasses, louboutin shoes, longchamp handbags, burberry outlet, longchamp handbags, prada handbags, louis vuitton outlet stores, air max, uggs, michael kors outlet, polo ralph lauren, michael kors outlet, louboutin, rolex watches, gucci outlet, christian louboutin

1:13 AM  
Blogger ninest123 said...

soccer shoes, bottega veneta, instyler, iphone 6s plus cases, converse, nfl jerseys, soccer jerseys, iphone 6s cases, mcm handbags, p90x, jimmy choo outlet, baseball bats, ghd, north face jackets, iphone 6 plus cases, iphone 6 cases, ipad cases, hollister clothing store, air max, babyliss pro, chi flat iron, iphone cases, beats by dre, valentino shoes, timberland boots, mac cosmetics, vans shoes, celine handbags, insanity workout, asics running shoes, ferragamo shoes, wedding dresses, north face outlet, abercrombie and fitch, oakley, ralph lauren, air max, mont blanc, lululemon outlet, reebok outlet, abercrombie, s6 case, gucci, herve leger, ray ban, birkin bag, new balance shoes, iphone 5s cases, vans, nike roshe run, louboutin, giuseppe zanotti

1:15 AM  
Blogger ninest123 said...

hollister, ugg, canada goose, moncler, pandora jewelry, rolex watches, montre homme, moncler, sac lancel, thomas sabo, moncler, swarovski crystal, sac louis vuitton, ugg, louis vuitton, links of london, barbour, moncler, juicy couture outlet, moncler outlet, canada goose, ugg pas cher, converse shoes, pandora jewelry, louis vuitton, doke gabbana, swarovski, coach outlet store online, pandora charms, canada goose, moncler, canada goose, juicy couture, pandora charms, supra shoes, moncler, canada goose uk, canada goose, ugg, marc jacobs, moncler, ugg boots, canada goose outlet, sac louis vuitton, canada goose jackets, barbour, wedding dresses, karen millen, toms shoes, louis vuitton uk
ninest123 16.01

1:18 AM  

Post a Comment

<< Home