http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20080812/BUSINESS/80812052 August 12, 2008
Environmentalism sprouts up on corporate boards
By JOANN S. LUBLIN
The Wall Street Journal via the Associated PressMore U.S. corporate boards are going green.
Amid rising investor worries over global warming and shrinking natural resources, directors are keeping a closer watch on environmental issues. Boards at Integrys Energy Group Inc., Quicksilver Resources Inc., Tesoro Corp. and elsewhere recently have created separate environmental panels — joining long-established ones at DuPont Co., Occidental Petroleum Corp. and Rohm & Haas Co. Other companies cover environmental issues with an existing board committee.
About 25 percent of Fortune 500 companies now have a board committee overseeing the environment, compared with fewer than 10 percent five years ago, estimates Mindy Lubber, president of Ceres, a national coalition of activists, investors and others concerned with the environment. Such panels typically try to make sure that executives effectively handle conservation efforts, new environmentally friendly ventures like wind power, compliance with environmental regulations and related business risks.
Shareholders are more active on environmental issues, too. The number of investor proposals related to the environment nearly doubled between 2004 and 2008, RiskMetrics Group Inc. says. Many proposals urge increased board attention to the issue.
The Earth's sustainability "has become a much more important part of every board's activities," observes Lester A. Hudson, chairman of American Electric Power Co.'s governance committee, which monitors environmental concerns.
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