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Global Warming Threatens Health of Corporations
The Wall Street Journal; April 16, 2003

No, it's not a headline for another WSJ anti-global warming editorial, much as it might read like one. Rather it's the headline for a news story by the Journal's Jeffrey Ball, who reports an uptick on the part of "influential shareholders" wanting to see action from some corporations because of a likely "big financial risk" down the road. Ball reports that the number of global warming-related shareholder resolutions facing U.S. companies has doubled from last year -- to 14 from 7 a year ago. Though none of the resolutions has passed, those that came to a vote last year received an average of 19 percent support, double the level of 2001," according to the Investor Responsibility Research Center. Resolutions this year face American Electric Power Co., General Electric, Exxon Mobil, Chevron Texaco, General Motors, and Ford Motor. While none is likely to pass -- and each faces opposition from the individual companies -- Ball's article suggests a trend toward more and more interest by shareholders in coming years ... and perhaps eventually to passage of one or more. He reports that "even traditional businesses are growing concerned about what is coming to be known as corporate 'climate risk'." Reinsurer Swiss Re, he writes, is beginning to ask companies applying for directors and officers insurance to explain their approach to potential government regulation of greenhouse gases.

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May 2003