Environmental Shareholder Proposal Wins a Strong 11% at BP(A)

The resolution was filed at BP by a coalition of US investors, including Trillium Asset Management, calling on the company to analyze risks to shareholder value from operating in environmentally or culturally sensitive areas, such as the coastal plain of the Arctic National Wildlife Refuge. Two years ago, more than 13 percent of BP shareholders voted in favor of an Arctic Refuge resolution supported by US Public Interest Group, Greenpeace, and Trillium Asset Management. This year, US PIRG and Trillium Asset Management are joined by Walden Asset Management of Boston, the Green Century Balanced Fund, World Wildlife Fund, Ethos Funds of Switzerland, Joseph Rowntree Charitable Trust, Royal Society for the Preservation of Birds, Ethical Funds Inc. of Canada, Enterprise Foundation of the Rockefeller Family Fund, Clean Yield of Vermont, Catholic Healthcare West, members of the Interfaith Center on Corporate Responsibility, and more than 115 individual investors based in the United Kingdom. The resolution was also co-filed by renowned shareholder activist and author Bob Monks.
The World Wildlife Fund and the US Public Interest Group have also partnered with Trillium Asset Management to file similar resolutions at ChevronTexaco and ExxonMobil.
TRILLIUM ASSET MANAGEMENT’S STATEMENT
BP STOCKHOLDER MEETING, APRIL 18, 2002
GOOD MORNING, MR. CHAIRMAN, BOARD OF DIRECTORS, AND FELLOW SHAREHOLDERS.
MY NAME IS SHELLEY ALPERN AND I AM THE DIRECTOR OF SOCIAL RESEARCH AND ADVOCACY AT TRILLIUM ASSET MANAGEMENT IN BOSTON, MASSACHUSETTS.
TRILLIUM IS PART OF A TEAM OF CONCERNED INVESTORS IN THE U.S. WHO WORKED TOGETHER TO SPONSOR THIS SPECIAL RESOLUTION ALONG WITH OUR BRITISH COLLEAGUES. THE FILERS OF THIS RESOLUTION INCLUDE WALDEN ASSET MANAGEMENT, THE GREEN CENTURY BALANCED FUND, ETHOS FUNDS OF SWITZERLAND, WORLD WILDLIFE FUND, THE JOSEPH ROUNTREE CHARITABLE TRUST, THE ROYAL SOCIETY FOR THE PRESERVATION OF BIRDS, CATHOLIC HEALTHCARE WEST, CLEAN YIELD, AND MORE THAN 115 INDIVIDUAL INVESTORS BASED IN THE U.K. THE RESOLUTION WAS ALSO CO-FILED BY RENOWNED SHAREHOLDER ACTIVIST ROBERT MONKS.
AS ENVIRONMENTALLY CONCERNED INVESTORS, WE HOLD BP IN OUR PORTFOLIOS IN LARGE PART IN RECOGNITION OF OUR COMPANY’S LEADERSHIP IN THIS AREA AND ITS ASPIRATIONS TO BE A DIFFERENT KIND OF ENERGY COMPANY.
WE COMMEND OUR COMPANY FOR ITS IMPRESSIVE ENVIRONMENTAL AND SOCIAL REPORTING TO DATE, BUT WE BELIEVE THAT INCREASED TRANSPARENCY IS NEEDED REGARDING RISK ANALYSIS OF POTENTIAL PROJECTS IN SENSITIVE AREAS, AND THAT SUCH TRANSPARENCY WILL ENHANCE THE RIGOR AND DISCIPLINE OF THE RISK ANALYSIS PROCESS.
THIS WILL BENEFIT MANAGEMENT, SHAREHOLDERS AND NUMEROUS OTHER STAKEHOLDER GROUPS.
IT IS OFTEN THE CASE THAT THE WORLD’S VAST OIL & GAS RESERVES LIE UNDERNEATH LANDS THAT ARE SOME OF THE WORLD’S LAST UNDEVELOPED REGIONS, AND WHICH ARE OFTEN ECOLOGICALLY FRAGILE AS WELL. IN MANY CASES THESE AREAS ARE INHABITED BY INDIGENOUS POPULATIONS WHOSE CLAIMS TO THE LAND ARE MILLENNIA OLD AND WHOSE VERY SURVIVAL IS TIED TO THE LAND. THE WORLD’S MOST RESPECTED SCIENTISTS ARE WARNING US THAT ALL OF OUR FATES ARE LINKED TO THE BIODIVERSITY OF THESE REGIONS AND THE SURVIVAL OF THE PEOPLES WHO KNOW THEM BEST.
OUR INVESTOR COALITION IS CONCERNED WITH POTENTIALLY SERIOUS ADVERSE CONSEQUENCES TO BP’S REPUTATION AND SHARE VALUE OF EXPLORING AND DRILLING IN THESE ECOLOGICALLY AND ENVIRONMENTALLY SENSITITIVE AREAS. WE HAVE OBSERVED, AS WE KNOW YOU HAVE, THE DAMAGE TO CORPORATE BRANDS AND SHARE VALUE THAT HAS FOLLOWED THE EXXON VALDEZ SPILL AND OTHER DISASTERS.
BY SHAPING ITS BRAND IDENTITY AROUND THE CONCEPT OF ENVIRONMENTAL STEWARDSHIP, OUR COMPANY HAS FURTHER TO FALL IN THE EVENT OF A MISCALCULATION THAT PRODUCES SUSTAINED DAMAGE TO AN ECOSYSTEM, EMPOWERS A REPRESSIVE GOVERNMENT, OR EXACERBATES CIVIL CONFLICT.
AS INVESTORS, WE DESIRE AND NEED TO KNOW MORE ABOUT YOUR APPROACH TO SUCH CONTROVERSIAL AREAS AS THE INDONESIAN RAINFOREST, TIBET, THE ARCTIC COASTAL PLAIN, THE SUDAN, THE CASPIAN REGION, AND MANY OTHERS. WE WISH TO PREVENT THE OPENING OF THE ARCTIC COASTAL PLAIN, AS WE BELIEVE THAT DRILLING WILL IMPERIL THE SURVIVAL OF THE GWICH’IN PEOPLE AND THE WILDLIFE OF THE REGION FOR WHAT MAY WELL TURN OUT TO BE LITTLE OR NO ECONOMICALLY RECOVERABLE PRODUCT.
WE FOLLOW THESE AREAS KEENLY AND WE ARE DEEPLY CONCERNED ABOUT THE REPUTATION OF THIS COMPANY. WE HAVE A STAKE IN ENSURING THAT YOUR ASPIRATIONS AND THE GOODWILL YOU HAVE GENERATED ARE NOT ULTIMATELY DISMISSED AS SIMPLE GREENWASHING.
WE THEREFORE URGE OUR FELLOW SHAREHOLDERS TO SUPPORT THIS SPECIAL RESOLUTION.
THANK YOU FOR YOUR ATTENTION.