Calvert News & Commentary

Calvert Supports the Goals of Earth Day

Companies with a history of environmental insensitivity can be toxic to investors.

4/22/2013

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Calvert Investments supports the goals of Earth Day and has been a leader in the field of sustainable and responsible investing (SRI) for over 30 years. Our credo has always been that responsible management of environmental, social, and governance factors contributes to sound financial performance, which in turn can translate into long-term shareholder value.  Read about four ways Calvert uses its investor voice to impact planet earth below.

Please follow us on Twitter and use hashtag #Calvert4EarthDay to tell us what you are doing to help the planet to qualify for a chance to win a donation of $100 dollars to your favorite charity. Please see the rules to enter. 1

Supporting the Transition to Cleaner Energy

While critical, Calvert believes that efforts to adapt to climate change will only succeed if we also reduce the pollution that causes climate change. Even though there was little progress on U.S. federal policy measures or international negotiations aimed at reducing greenhouse gas emissions, investors continued to make the case that action is urgently needed. Calvert played a leading role within the Investor Network on Climate Risk (INCR) on major public policy victories including the extension of important incentives for renewable energy production, stronger fuel economy standards for automobiles, and protection of Clean Air Act Rules that will reduce harmful pollutants produced by electric power plants. These rules and incentives send an important signal to market participants. In 2013, Calvert will continue to support policy that accounts for the true cost of greenhouse gas pollution, which is a crucial part of the transition to a lower carbon economy and a more secure and independent energy supply.

Climate Disruption Underlines the Urgency of Adaptation and Mitigation

Natural catastrophes, primarily extreme weather, caused more than $380 billion in economic losses globally in 2011, setting a new record. The massive disruptions predicted by climate change scientists continued last year; according to the National Oceanic and Atmospheric Administration (NOAA), 2012 was the warmest year on record for the contiguous United States, wildfires raged through western states, extreme drought hammered crops across much of the country, and the super–storm Sandy caused tragic human losses and billions of dollars of damage to communities in New Jersey and New York. Companies and investors are increasingly searching for ways to build climate resiliency into company operations and supply chains, even as the political prospects for achieving regulation of greenhouse gas emissions or a price on carbon appear unlikely in the short term.

Calvert nonetheless maintained its leadership role, calling for urgent action as it has done for more than a decade. In 2012, in order to help make the financial implications for investors and companies clear and to encourage efforts to adapt to climate change, Calvert co–released two reports with NGO and corporate partners. “Physical Risks from Climate Change: A guide for companies and investors on disclosure and management of climate impacts" focuses on companies in the agriculture, food and beverage, apparel, electric power, insurance, mining, oil and gas, and tourism sectors — all of which are considered to be highly vulnerable to climate impacts. Calvert and other leading companies from the Partnership for Resilience and Environmental Preparedness (PREP) released a first–of–its–kind guide for businesses to assess and prepare for the risks and opportunities posed by climate change, entitled, “Value Chain Climate Resilience: A guide to managing climate impacts in companies and communities."

Climate, Scarcity and Growing Demand Put Spotlight on Water

As drought plagued half the continental United States and the United Nations reported that more than one billion people do not have access to clean drinking water, the urgency of addressing the global water challenge was clear in 2012. Calvert called upon companies exposed to water risk in sectors such as apparel (Hanesbrands), food manufacturers (Sysco), beverage companies (Coca-Cola and PepsiCo), and electric utilities (Duke Energy) to develop and disclose water management systems and to reduce their water use. Water scarcity and inadequate infrastructure are driving innovation and investment opportunities, which can create shareholder value while helping to solve the global water crisis. Through corporate dialogue shareholder resolutions, and participation in global standard setting initiatives, Calvert focused sharply on these risks and opportunities and helped move companies toward improved management of this challenging set of issues.

Demonstrating Shared Responsibility for Safer, Healthier Food

Calvert participated in a new multilateral stakeholder initiative on ethically–produced food in the U.S. and serves on the Steering Committee of the EquiTABLE Food Initiative, a certification program designed to improve farmworker welfare, environmental performance, and product safety of domestically grown fruits and vegetables. The Steering Committee includes Oxfam America, the United Farm Workers, Costco, growers, and environmental and consumer safety non–profit groups. The program has completed pilot testing of draft standards at several California farms and is hiring trainers to ramp up the project.

Calvert Investment Management, Inc., 4550 Montgomery Avenue, Suite 1000N, Bethesda, MD 20814.

1 Rules: To enter and quality for a chance to win $100 dollars for your favorite charity, you must have a twitter account, follow us at @CalvertInvests and use hashtag #Calvert4EarthDay between April 22 –April 28 to tell us what you are doing to help the Planet. One entry per person, multiple accounts will not be accepted. Winner will be contacted by direct message on Monday, April 29.



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