The CERES Principles: 10 Years Later
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The Exxon Valdez oil spill in 1989 polluted some of Alaska’s most pristine waters and shores, killed thousands of birds and marine animals — and spawned what have become the 10 CERES Principles, an environmental commitment for industry.
Like the legacy of the spill itself, the progress of the CERES Principles is worth assessing.
Ten years ago, in response to the Exxon Valdez oil spill, several environmentally conscious business and investment leaders developed what were then called the “Valdez Principles” — “a commitment for business to make continuous environmental improvement and to become publicly accountable for the environmental impact of all its activities.”
In 1992, the Valdez Principles became the “CERES Principles” (see sidebar) with CERES being an acronym for the Coalition for Environmentally Responsible Economies. The Coalition’s mission is “to encourage companies, in cooperation and collaboration with CERES, to endorse and practice the CERES Principles.”
But more ambitiously, in the words of CERES Executive Director Robert Massie, “We would like to transform the whole American economy.”
How extensively has that transformation occurred across the country? How many companies have endorsed the principles? Do those companies represent a range of industries and geographical areas?
The CERES Tally
CERES seeks members to join the coalition and endorsers to sign the CERES Principles. Members are primarily environmental organizations, socially responsible investment groups, and religious orders affiliated with Interfaith Center on Corporate Responsibility. The coalition now has 55 members, who pay dues and whose representatives are eligible to serve on the 19-member board of directors. Some members are also endorsers of the principles.
Endorsers of the principles are institutions and corporations, including publicly traded companies. Of the 51 endorsers of the principles, 20 are publicly traded companies, 13 of which have more than $1 billion in annual sales. The 20 publicly traded companies are (in order of their endorsement):
- Ben and Jerry’s Premium Ice Cream
- Sunoco, Inc.
- The Timberland Co.
- The Body Shop International
- Real Goods Trading Corp.
- H.B. Fuller Co.
- General Motors Corp.
- Polaroid Corp.
- Arizona Public Service Company
- Bethlehem Steel Corp.
- Green Mountain Power Corp.
- BankAmerica Corp.
- ITT Industries
- PP&L Resources (Pennsylvania Power & Light)
- Baxter International
- Wainwright Bank
- Coca-Cola
- BankBoston Corp.
- Interface Inc.
- Northeast Utilities
The Role of Shareholder Resolutions
When corporate annual meetings mark the calendar each spring, many include shareholder resolutions to adopt the CERES Principles. Since 1990, CERES has used the shareholder arena to draw companies’ attention to its 10-point environmental code, according to Doug Cogan of the Investor Responsibility Research Center, which tracks environmental shareholder resolutions.
“During the early years, 1992 to 1994, many companies had their first introduction to the CERES Principles through shareholder resolutions,” he said. “The resolutions got them to focus intently on the principles, and for several companies — Bethlehem Steel, General Motors, and Sun — it was an important factor in their endorsement.”
This year, endorsement of the CERES Principles is on the agenda at the annual meetings of 14 corporations: AMR, Abbott Laboratories, Aetna, Dana, Delta Air Lines, Gillette, Eli Lilly, Nalco Chemical, Niagara Mohawk Power, Raytheon, Reynolds Metals, Sears Roebuck, Thermo Electron, and Wal-Mart Stores. Some meetings took place in late April, and others are taking place this month.
Moving Beyond the Principles
In addition to signing up endorsers of the CERES Principles, CERES continues to work on signing up coalition members. “We want to keep increasing our size and effectiveness,” according to Massie. “We will deepen our engagement in the coalition as it grows bigger, and make more effective use of that network,” including working with individual member organizations and companies on specific projects.
In late 1997, CERES launched the Global Reporting Initiative, an attempt to standardize the structure and content of corporate sustainability reporting with voluntary guidelines. According to CERES, the Global Reporting Initiative seeks to gain acceptance for sustainability reporting practices; promote standardized reporting guidelines that reflect environmental, economic, and social dimensions; and ensure a permanent institution to support the practices.
Though there is some overlap between the reporting initiative and the CERES Principles, according to Massie, the Global Reporting Initiative is a standard of disclosure, and the principles are the broader goals that include disclosure, which is made possible by the reporting.
“The Global Reporting Initiative was designed to create harmony” with the CERES Principles, he said, and has been widely accepted by stakeholders around the world. It has also become “a highly respected model of international cooperation,” according to CERES.
Because the reporting initiative is still a work in progress, many questions remain, according to the Investor Responsibility Research Center. “It does not provide guidance on how to create an organizational structure within the reporting entity to collect, analyze, and disseminate the data,” according to an IRRC report.
But it is being field tested this year by major corporations and stakeholder organizations, and CERES expects to have a tested guideline in place by 2000, along with a structure for the project’s permanent institutional home.
According to Massie, CERES is “a forum for conversations, a meeting group, a catalyst for new thinking, and a tireless proponent of information as an engine of accountability.”
And its work is far from over.
CERES PRINCIPLES: KEY CONTACTS
The CERES Principles are on corporate agendas not just at stockholder annual meetings, but throughout the year in a variety of ways. Here are some key contacts who can help you track the progress of the CERES campaign:
Coalition for Environmentally Responsible Economies (CERES): Robert Massie, Executive Director; Alyson Schiller, Communications Coordinator, (617) 247-0700; http://www.ceres.org
Interfaith Center on Corporate Responsibility: Ariane Van Buren, Coordinator, CERES shareholder campaign, (212) 870-2623
Investor Responsibility Research Center: Meg Voorhes, Director, Social Issues Service, (202) 833-0700; Doug Cogan, Deputy Director, Social Issues Service, (603) 675-9274
New York City Pension Fund: Ken Sylvester, New York City Comptroller’s Office, (212) 669-2013
The 10 CERES Principles
Here is the text of the CERES Principles:
By adopting these Principles, we publicly affirm our belief that corporations have a responsibility for the environment and must conduct all aspects of their business as responsible stewards of the environment by operating in a manner that protects the Earth. We believe that corporations must not compromise the ability of future generations to sustain themselves.
We will update our practices continually in light of advances in technology and new understandings in health and environmental science. In collaboration with CERES, we will promote a dynamic process to ensure that the Principles are interpreted in a way that accommodates changing technologies and environmental realities. We intend to make consistent, measurable progress in implementing these principles and to apply them in all aspects of our operations throughout the world.
- Protection of the Biosphere
We will reduce and make continual progress toward eliminating the release of any substance that may cause environmental damage to the air, water, or the Earth or its inhabitants. We will safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.
- Sustainable Use of Natural Resources
We will make sustainable use of renewable natural resources such as water, soils, and forests. We will conserve nonrenewable natural resources through efficient use and careful planning.
- Reduction and Disposal of Wastes
We will reduce and where possible eliminate waste through source reduction and recycling. All waste will be handled and disposed of through safe and responsible methods.
- Energy Conservation
We will conserve energy and improve the energy efficiency of our internal operations and of the goods and services we sell. We will make every effort to use environmentally safe and sustainable energy sources.
- Risk Reduction
We will strive to minimize the environmental, health and safety risks to our employees and the communities in which we operate through safe technologies, facilities and operating procedures, and by being prepared for emergencies.
- Safe Products and Services
We will reduce and where possible eliminate the use, manufacture, or sale of products and services that cause environmental damage or health or safety hazards. We will inform our customers of the environmental impacts of our products or services and try to correct unsafe use.
- Environmental Restoration
We will promptly and responsibly correct conditions we have caused that endanger health, safety, or the environment. To the extent feasible, we will redress injuries we have caused to persons or damage we have caused to the environment and will restore the environment.
- Informing the Public
We will inform in a timely manner everyone who may be affected by conditions we have caused by our company that might endanger health, safety, or the environment. We will regularly seek advice and counsel through dialogue with persons in communities near our facilities. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities.
- Management Commitment
We will implement these principles and sustain a process that ensures that the board of directors and chief executive officer are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In selecting our board of directors, we will consider demonstrated environmental commitment as a factor.
- Audits and Reports
We will conduct an annual self-evaluation of our progress in implementing these principles. We will support the timely creation of generally accepted environmental audit procedures. We will annually complete the CERES Report, which will be made available to the public.
CERES Disclaimer:
These Principles establish an environmental ethic with criteria by which investors and others can assess the environmental performance of companies. Companies that sign these Principles pledge to go voluntarily beyond the requirements of the law. The terms may and might in Principles one and eight are not meant to encompass every imaginable consequence, no matter how remote. Rather, these Principles obligate endorsers to behave as prudent persons who are not governed by conflicting interests and who possess a strong commitment to environmental excellence and to human health and safety. These Principles are not intended to create new legal liabilities, expand existing rights or obligations, waive legal defense, or otherwise affect the legal position of any endorsing company, and are not intended to be used against an endorser in any legal proceeding for any purpose.
Seattle P-I Environmental Job: Move Quickly If Interested
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A deadline is looming.
Experienced environmental reporters with at least three to five years of metro experience and a yen for the Northwest should move quickly if they want to be considered for an opening at the Seattle Post-Intelligencer.
The P-I has an opening to replace veteran environmental journalist Rob Taylor, who is relocating back to the East Coast and to the Washington, D.C., area. But Metro Editor Kathy Best says the position likely won’t remain open for long.
“We’re looking for a clear and graceful writer who can do environmental investigations and cover everything from resources, trees and fish, to toxic pollution,” she said in a phone interview. “We’re looking for Superman,” regardless of the gender of the candidate.
Best declined to specify a salary range for the position, but said the beat “is one of the highest profile beats at the P-I, and the salary goes along with that expectation.”
The P-I is part of the Hearst chain and it faces local competition from the Seattle Times, which is 51 percent owned by the local Blethen family and 49 percent owned by Knight-Ridder. Some view the Seattle daily newspaper situation as a classic old-fashioned newspaper-war, and Hearst at least for the time being has indicated a willingness to add as many as 17 new positions to the P-I. How long that commitment may remain apparently is a matter of some speculation, and for some concern, in the Seattle journalism community.
Taylor had covered environmental and resources issues for the P-I for more than nine years (including a year as a Knight journalism fellow at Stanford University in 1996-1997). He previously had worked in the Washington, D.C., bureau of The Wall Street Journal for a similar period, the last three years covering environment.
He says he considers the P-I beat he is leaving to be particularly attractive because the paper generally gives the issues good play and because it involves covering the environment “where we still have one and where people still care a lot about it.” He points to “constant battles” involving the region’s natural resources and endangered species, running from spotted owls and salmon to toxics and pollution. He says the paper puts a pre-mium on enterprise reporting in the beat.
Taylor says he expects now to begin work on what he says is a long-delayed book on Washington’s 1994 forest fires and the effects of fire suppression on western forests.
Qualified reporters wanting to be considered for the P-I post will know a looming deadline when they see one: Contact Metro Editor Kathy Best at (206) 448-8031.
Headwaters News Covers the Rockies Like Snowpack
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A new electronic news service is covering the Rocky Mountain region, and it is rich with news on natural resources and the environment.
Headwaters News began publishing February 18. It comes out on the World Wide Web Monday through Friday, and contains typically about 15 stories a day. The stories are really capsulized summaries of stories appearing in newspapers and other media around the region. The summaries, usually around 40 words long, link electronically to the original text in the online edition of whatever newspaper they came from.
The format is a variation on the one used successfully by Greenwire for national environmental stories. Headwaters News, however, focuses on news from the Rockies in both the United States and Canada. It covers Alberta, Arizona, British Columbia, Colorado, Idaho, Montana, New Mexico, Utah, Washington, and Wyoming.
Headwaters covers a wide range of regional interests, not just environment and natural resources.
Headwaters is posted to the Web by 9 a.m. Mountain Time. Editor Tracy Stone-Manning must be on the job by 5 a.m. every morning to get it out. She scans the electronic editions of at least 40 newspapers to cull what she thinks are the important stories (no crime or sports). The service includes original commentary in a separate section and hopes eventually to add original reporting.
A recent issue carried stories on dropout rates in Indian schools (Christian Science Monitor), protests against water rights for factory farms (Twin Falls Times News), the Darigold coop’s lifting of its ban on rBGH (AP/Billings Gazette), and a meeting between Montana’s governor and the National Park Service on brucellosis in bison.
The service is run by the Center for the Rocky Mountain West at the University of Montana. It is funded by a 3-year, $200,000 grant from the William and Flora Hewlett Foundation*. Publisher Richard Manning, a journalist and author of four books, founded Tidepool, a similar news service for the Pacific Northwest’s coastal rain forest.
You can find Headwaters by browsing http://www.headwatersnews.org/index.html. E-mail subscriptions are also available.
*Editor’s Note: The Hewlett Foundation also provides financial support to EHC, publisher of this newsletter.
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Note: Formerly published by the National Safety Council. Reprinted with permission.