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FOR RELEASE: February 10, 2005
Oakland,
California
For Release: February 10, 2005
Contact: Richard Liroff (202) 778-9644
New
Benchmarking Tool Published for Assessing Corporate Progress
on Safer Chemicals in Consumer Products
A new report released today by The Rose Foundation for Communities
and the Environment and published in the journal Corporate
Environmental Strategy provides investors and senior corporate
executives with a new tool for measuring corporate progress
in producing safer consumer products. The report also offers
vignettes of cutting edge actions by major companies to reduce
the toxic chemicals in their products.
Companies
face growing challenges to their reputations and bottom lines
because of toxic chemicals in their products. Scientists are
finding chemicals in human blood and breast milk and voicing
concern about impacts on the health of infants, children,
and fetuses. Environmental health advocates have targeted
cosmetics, electronics, and health care product manufacturers.
Investment companies are raising questions and filing proxy
resolutions.
But there are good business reasons for substituting safer
chemicals in products. Such shifts present a remarkable opportunity
for competitive advantage, reduced operating costs, increased
profits, and enhanced shareholder value.
The
benchmarking tool highlights steps companies can take in the
following areas: making a corporate commitment to toxicity
reduction with measurable goals and public reporting; increased
and more effective public disclosure of business risks and
opportunities associated with chemicals in products; systematic
review of the chemical make-up of products and comparison
with published lists of high priority suspect chemicals; and
greening corporate supply chains.
The
benchmarking tool can be used by corporate managers to design
safer chemicals programs. A prime example of such an effort
is SC Johnson's trade-marked Greenlist program, which has
successfully reduced product toxicity and lowered costs. Other
companies highlighted include Samsung, Fujitsu, Nike, Marks
& Spencer, and Boots Group, PLC.
Investors
can use the tool to screen and identify "best in class" companies
and raise questions with corporate management. It is proposed
as a "first generation" tool subject to further refinement
and upgrading.
"There
are sound business reasons for reducing the health impacts
of many companies' products. Companies and investors that
recognize this dynamic will gain competitive advantage and
position themselves to make more money," said Tim Little,
Executive Director of The Rose Foundation in Oakland, California.
Tim Smith, President of the Social Investment Forum, commented,
"It is increasingly important for companies to be transparent
in their disclosure of chemicals which adversely affect people
and our environment. It is also important for investors, environmentalists
and citizen groups to have access to such information so that
we can urge companies to be more responsible environmental
citizens." Darden Business School Professor Andrea Larson,
author of a forthcoming book on corporate innovation and the
environment, states "The innovative firms are creating opportunity
from what other companies see as only problems. Using green
chemistry principles and benchmarking tools they have moved
beyond cost savings to top line growth through strategic positioning
of high performance products without the health risk."
A
condensed form of the report, "Benchmarking Corporate Management
of Safer Chemicals in Consumer Products -- A Tool for Investors
and Senior Executives" appears in the January-February 2005
issue of Corporate Environmental Strategy, accessible at the
Rose Foundation Website. The complete version, "Protecting
Public Health, Increasing Profits and Promoting Innovation
by Benchmarking Corporate Governance of Chemicals in Products"
is also available at the Rose Foundation Website. The longer
paper also provides annexes compiling shareholder resolutions
on environmental health, environmental health advocacy websites,
and pertinent state, local, and European policy enactments.
Dr. Richard A. Liroff, Senior Fellow in the Toxics Program
at World Wildlife Fund (Washington, D.C.) is the paper's author.
– 30 –
Short
PDF version of the report
as it was published in the Corporate Environmental Strategy
January/February 2005 issue
Posting of this article on the Rose Foundation website
is made possible by contributions from
Trillium Asset Management Corporation and Domini
Social Investments LLC
PDF version of the full report
FOR
MORE INFORMATION ON THE ROSE FOUNDATION'S Environmental
Fiduciary Project
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