A coalition of 21 health and environment groups are joining the Pesticide Action Network North America (PAN) to encourage mutual funds to support resolutions urging both Dow Chemical Company (NYSE: DOW) and Avon Products (NYSE: AVP) to come clean about toxic chemical risks.
Among the 23 fund families targeted are those of Vanguard, Fidelity, Bank of America and Bank of New York Mellon. A shareholder resolution on nanomaterials risks is scheduled to be voted on at the Avonannual meeting on May 1, 2008. The Dow proxy item on pesticides linked to asthma will be voted on by shareholders on May 15, 2008.
Health and Environmental groups involved include the Breast Cancer Fund, the American Nurses Association, the Institute for Children’s Environment Health, Friends of the Earth and Greenpeace.
A joint letter from the group to the mutual fund companies states: "Exposing consumers to toxic chemicals, frequently without their knowledge, companies run real business risks, including costs of recalls, damaged reputations, litigation, and loss of market share. We are bringing to your attention the Avon and Dow Chemical shareholder resolutions, because they provide excellent opportunities for your Fund to vote in favor of resolutions with both astrong financial and public health basis."
PAN Managing Director Stephen Scholl-Buckwald said, "In recent years, mostmutual funds have routinely voted against or abstained from shareholder resolutions seeking greater disclosure or action on product toxicity concerns. With the significant benefit to shareholders and the company of increased transparency and disclosure, and the minimalcost for preparing the requested reports, there is every reason to vote in favor of the Avon Products and Dow proposals."
The Avon resolution, Question 4 on the company’s proxy statement, requests areport to shareholders on the company’s policies on nanomaterial product safety. Avon has defended its use of nanoparticles in sunscreens, while the scientific community has raised serious questions about the adequacy oftesting.
The Dow Chemical resolution, Question 3 on the company’s proxy statement, seeks a report to shareholders on the extent to which Dow products may cause or exacerbate asthma and the company’s policies and activities to phase outor restrict materials linked with such effects. Approximately half of Dow’send-use pesticide products (73 of 149) may be linked to asthma and other respiratory problems through active or inert ingredients or metabolites, according to PAN.
The full list of funds receiving the joint letter (in alphabetical order) is as follows: Allianz Global Investors of America L.P.; Ameriprise Financial; AXA Financial; Bank of America; Bank of New York Mellon Corporation; Barclays Global Investors UK Holdings Ltd; Brandes Investment Partners L.P.; The Capital Group Companies; Davis Selected Advisers; Dodge & Cox Inc.; FMR LLC; Franklin Resources, Inc.; Harris Associates; Janus Capital Management, LLC; LSV Asset Management; Northern Trust Corporation; Oakmark Equity and Income Fund; Price (T. Rowe) Associates, Inc.; State Street Corporation; TCW Group, Inc. (The) US; The Vanguard Group, Inc.; Washington Mutual Investors Fund; and Wellington Management Company, LLP.
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