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Tell Mutual Funds to Take a Stand Against Global Warming
Global warming poses a serious threat to our health, our economy and our environment. Groups of concerned investors have successfully persuaded a handful of corporations to reduce their heat-trapping emissions.
Unfortunately, major mutual fund companies such as Vanguard, Fidelity, and American Funds, have not pressed the companies in their portfolios to address global warming. Please sign this petition urging these mutual funds to protect the health and economic well being of current and future generations by supporting meaningful action on global warming today. You don’t have to be a current investor to take action.
| Sample Letter for Campaign |
Subject: Take a Stand Against Global Warming
Dear [ Decision Maker ] ,
As an investor who is interested in protecting retirement and other investments for myself and millions of other investors, I'm deeply concerned about the financial impact that global warming will have on mutual fund portfolios. The science on global warming is clear: human activities that generate carbon dioxide are creating rising temperatures worldwide, which will have a growing impact on weather and the environment. As the effects of global warming increase, companies across a wide spectrum of industries will be affected.
As a major mutual fund company in the United States, you play an important role in safeguarding the investments of millions of investors. However, whenever your largest funds had the opportunity to vote on a shareholder resolution encouraging corporations in your portfolio to take climate change seriously, they have failed to support these resolutions.
As an investor, I am asking you to re-think your strategy on climate change issues and take seriously the effect that global warming will have on your funds. At next year's corporate annual meetings, there will once again be a range of resolutions on the ballot encouraging companies to address global warming. I encourage you to take these resolutions seriously.
I would like to hear from your company about your plans for dealing with climate change resolutions in 2006.
Signed by:
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Campaign Launched:
March 20, 2006
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Global Warming Risks
Global warming is one of the most serious challenges humankind has ever faced. Scientists predict that continued warming will result in extreme heat and drought, rising sea levels, and higher-intensity tropical storms, affecting human health and the economy.
The Effect of Global Warming on the Economy
Climate change threatens the operations of companies in a range of industries--from energy to automobile manufacturers to insurance to travel. Some companies will face increasing regulations on carbon emissions, while others may experience losses as a result of more intense weather events. Forward-thinking companies are taking action to address global warming and curb the harmful consequences. Others continue to bury their heads in the sand, putting their investors and our environment at risk.
Shareholders Hold Companies Responsible
In response to the economic threats posed by global warming, investors are filing resolutions calling on companies to address the global warming problem. These resolutions have become a powerful tool for engaging major corporations. In 2005, shareholders filed 30 global warming resolutions, targeting oil and gas companies, electric power producers, manufacturers, financial institutions and automakers. Sixteen of those companies, including Ford and FirstEnergy, agreed to shareholder requests last year. As a result, these companies acknowledged the severity of the global warming problem, agreed to disclose the risks that global warming poses to their businesses, and committed to develop plans to reduce their emissions of heat-trapping gasses. In past years, shareholder resolutions have persuaded dozens of other major polluters to begin to address global warming, including: American Electric Power, Cinergy, ChevronTexaco, and HomeDepot.
Mutual Companies Fail to Act
Most individuals invest in the stock market through mutual funds, which have a wide range of holdings in various sectors to help minimize risk. While major institutional investors, such as pension funds and endowments, are increasingly supporting these resolutions, none of the top 100 U.S. mutual funds support climate change resolutions targeting the companies in their portfolios. These mutual funds are out of touch with their investors. A recent survey by the Civil Society Institute found that 7 out of 10 mutual fund investors want their fund to support climate change resolutions on their behalf. By failing to vote for climate resolutions, mutual funds are neglecting their responsibility to protect investors from companies that expose themselves to financial losses, lawsuits, and insurance problems by ignoring global warming.
Take Action
The three largest U.S. mutual fund families (Vanguard, Fidelity, and American Fund) control 70 percent of the country’s mutual fund investments. Please sign this petition urging them to act in the best interest of investors by voting for climate change resolutions. Given the national profile of these companies, you don’t need to be a current investor to send them a comment.
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