Investors urged 14 major U.S. companies, including General Motors (NYSE: GM), Boeing (NYSE: BA) and Xerox (NYSE: XRX), to break with the U.S. Chamber of Commerce’s and National Association of Manufacturers’ (NAM) positions on pending climate legislation.
Recently, Apple (Nasdaq: AAPL), Exelon (NYSE: EXC), PG&E (NYSE: PCG), PNM Resources NYSE: PNM), Duke Energy (NYSE: DUK) and Nike
(NYSE: NKE) resigned from the Chamber or NAM or left the Chamber’s board over the
associations’ strident opposition to pending climate legislation.
Forty-three investors and investment-focused organizations
representing over $16 billion in assets under management sent a letter
to the companies companies urging them to end the "glaring
contradiction" between their own policies and those of the two industry
associations.
Other companies that received the letter include: Air Products &
Chemicals (NYSE: APD), Alcoa (Nasdaq: ALCO), American Electric Power (NYSE: AEP), Caterpillar (NYSE: CAT),
Cummins (NYSE: CMI), Deere & Co. (NYSE: DE), DTE Energy (NYSE: DTE), Entergy (NYSE: ETR), Ford Motor Co. (NYSE: F), Lockheed Martin (NYSE: LMT), and Whirlpool (NYSE: WHR).
According to the letters, this "misalignment of positions" poses
serious business and reputational risks to the companies. The Chamber’s
and NAM’s "position and active voice on climate change is especially
embarrassing for numerous members who are proactive leaders on reducing
greenhouse gases and limiting their negative impact with respect to
climate change," it said. "Furthermore, while some companies, including
[yours], have articulated a business rationale for a national policy
that reduces greenhouse gas emissions, their membership in NAM/Chamber
is sends a starkly contradictory message."
The investors, which include Walden Asset Management and Green Century Capital Management, asked the companies to address their disagreement with the Chamber and NAM on climate change policy by withdrawing membership, publicly disclosing their disagreement, or asking the associations to refund the portion of their dues used to lobby on the issue.
"Companies that are leaders in environmental sustainability and support reasonable and forward-looking steps in public policy find themselves in an ethical dilemma and evolving public relations disaster when the trade associations, where they are active and visible members, are frantically trying to roll back the clock and even deny the threat of climate change," said Timothy Smith, Senior Vice President of Walden Asset Management. "Therefore, it is gratifying to see companies like Nike, Apple and Exelon speak out and even resign from the Chamber so that their dues and good name will not be used on the wrong side of this debate."
"As the manager of environmentally-responsible mutual funds, Green Century strongly believes that climate change is a serious threat to our planet and our economy," said Emily Stone, Shareholder Advocate for Green Century Capital Management. "We are at a critical crossroads between a polluting, dangerous path and a clean energy future, and we believe it is now more important than ever for companies to take clear action to preserve their leadership roles on this critical issue by distancing themselves from the antagonistic lobbying of business associations such as the U.S. Chamber of Commerce and the National Association of Manufacturers."
"Climate change is one of those major issues where misalignment between companies and trade associations carries serious bottom line risks for companies," said Bruce F. Freed, President of the Center for Political Accountability, a non-partisan advocacy organization promoting corporate political transparency and accountability. "Good corporate governance should lead companies to assure that their trade associations do not engage in activities and use their funds in ways that may damage the company’s reputation or be at odds with its stated public policy and business objectives."
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