The Volt isn't enough for the green movement.
General Motors is engaged in a titanic battle to rescue its public image, but it has suffered a set back of sorts as shareholder activists concerned about global warming have targeted the automaker for failing to do enough to curb greenhouse emissions.
The resolution comes at a sensitive time for GM since it is already facing rising pressure from California’s politically potent Congressional delegation on the global warming issue while it is seeking financial aid from the Obama administration. The Obama administration has promised the U.S. would adopt policies to slow climate change.
The Tri-State Coalition for Responsible Investment is specifically targeting GM. The pressure group noted that outside investors have a long, unsuccessful history of filing shareholder resolutions with GM and engaging the company on climate-related business strategies. A Tri-State shareholder resolution again asks General Motors to set green house gas reduction goals from its products and operations, as other U.S. and offshore based automakers have already done.
The resolution cites GM’s ongoing litigation to stop California’s clean car standards from being adopted and its lackluster response compared to Ford in developing a business model that accounts for climate change.
“Companies in every industry, especially energy sectors, must assess and mitigate climate change risks,” said New York City Comptroller William Thompson Jr., whose office oversees $115 billion in pension fund assets and filed resolutions with electric power and coal companies. “Investors require full and transparent disclosure of the actions companies are taking to address the risks and opportunities of climate change, so that they can make informed investment decisions.”
GM has yet to respond to the resolution.
Mindy S. Lubber, president of Ceres, said the coalition of investors and environmental groups is targeting nine companies that have lagged behind in adopting policies aimed at helping reduce greenhouse gas emissions and global warming.
“These climate watch companies are ignoring a major business trend that will influence their competitive positioning for years to come,” said Lubbers. “Given the political shift in Washington, all companies should be minimizing climate risks and maximizing clean energy opportunities. Companies that miss this trend are setting themselves up to fail in the 21st century low-carbon economy,” she said.
The GM resolution is one of a record 63 global warming resolutions filed with 56 U.S. companies and one Canadian company as part of the 2009 proxy season, according to the organizers of the campaign. The resolutions, seeking greater disclosure from companies on their financial exposure and response strategies to climate-related business trends, were filed by some of the nation’s largest public pension funds, as well as labor, foundation, religious and other institutional shareholders, who collectively manage more than $1.9 trillion in assets. The shareholder filings are coordinated by the Ceres investor coalition and the Interfaith Center on Corporate Responsibility (ICCR), a group of faith-based investors.
The Climate Watch companies targeted by the 2009 include Southern Electric, Massey Energy and Consol Energy; Ultra Petroleum, ExxonMobil, Chevron, Canadian Natural Resources and Standard Pacific as well as GM.