Recent Company Dialogue

12.21.07

Letter to SunPower leadership in environmental management

Portfolio 21 has asked SunPower, U.S. solar panel manufacturer, to provide an annual corporate responsibility report that communicates its recent environmental progress. In addition, Portfolio 21 has encouraged the company to demonstrate leadership by implementing sustainability measures in its own administrative offices and adopt a formal environmental management plan that ensures the company is addressing its environmental impacts and liabilities.

12.14.07

Letter to Whole Foods regarding green building and environmental reporting

Whole Foods' Sarasota, Florida store was the first supermarket to receive LEED Certification by the U.S. Green Building Council. As Whole Foods' growth strategy is based on opening new stores, we've asked the company to establish LEED certification goals for all new stores--both new construction and renovation of existing buildings. In addition, we've asked the company to provide detailed reporting on environmental metrics covering issues such as packaging, waste, recycling, and energy use.

11.26.07

Letter to Bristol-Myers Squibb regarding biotechnology, supplier code of conduct, and green chemistry

Portfolio 21 wrote Bristol-Myers Squibb to clarify the company's biotechnology policy, and to request additional information about the company's supply chain code of conduct and its commitment to researching the aquatic impacts of pharmaceuticals. Additionally, the company has made progress in its elimination of PVC from its packaging, and Portfolio 21 would like to determine when the phase-out will be complete.

11.14.07

Letter to Severn Trent regarding water leakage and water privatization issues

Severn Trent, a UK water services company, has been held in Portfolio 21 since 2002. As a result of recent poor performance in leakage detection and repair, Portfolio 21 asked the company to improve its performance in this area and demonstrate leadership by achieving goals that stretch beyond regulatory requirements, while also increasing its transparency in reporting chemical usage in its water treatment. In addition, due to growing concerns surrounding water privatization in developing nations, we asked Severn Trent to disclose its current level of activities in these regions. Past communications with the company have indicated that operations in these areas accounted for less than one percent of revenues.

11.14.07

Letters to Storebrand and Deutsche Post regarding annual reporting

Portfolio 21 performs ongoing and annual reviews of companies held in our mutual fund. As a result of our reviews of Storebrand and Deutsche Post we found that both companies continue to meet our criteria for environmental sustainability, but could make improvements in the area of reporting. While Storebrand and Deutsche Post each provide thorough corporate responsibility reports, we have asked the companies to increase their reporting frequency to annual reporting. We believe shareholders and other stakeholders benefit from annual reporting that includes strategic approaches to environmental issues, and recent progress, as well as trend data for environmental metrics. A recent reply from Deutsche Post indicates that the company will begin reporting annually in 2008.

10.2.07

Shareholder Resolution Filed with Whole Foods Market

As a continuation of our efforts to pressure Whole Foods Market to improve its corporate governance practices, Portfolio 21 co-filed a shareholder resolution calling for the separation of the Chief Executive Officer and Chairman positions. The primary purpose of the Chairman and Board of Directors is to protect shareholders' interests by providing independent oversight of management, including the CEO. Separating the roles of Chairman and CEO can promote greater management accountability to shareholders and lead to a more objective evaluation of the CEO.

9.12.07

Portfolio 21 urges 2008 Olympic sponsors to press the Chinese government to take action on Sudan

As the 2008 Olympic Games approach, public interest groups in the U.S. and abroad are calling attention to the Chinese government's influential relationship with the government of Sudan. Portfolio 21 joined a coalition of investors calling on sponsors and suppliers of the Beijing Olympics to press the Chinese government concerning the crisis in Sudan. Specifically, to urge Beijing to use every tool at its disposal to convince the government of Sudan to allow a robust civilian protection force to move into Darfur before the Games begin. The people of Darfur desperately need a reversal of Chinese policy for their very survival. China has unrivaled influence with the government of Sudan due to its leading role in oil extraction and its provision of arms to the government. Chinese oil revenues and weaponry have enabled the slaughter of hundreds of thousands of Darfurians and the displacement of two million more. While there have some hopeful developments on the international diplomatic front, the killing continues and the future security of Darfur is anything but assured.

8.17.07

Portfolio 21 objects to the SEC's proposed changes to the shareholder resolution process

In July the SEC issued proposed changes to SEC Rule 14a-8 that would result in the elimination of, or restriction of, advisory shareholder resolutions. Any such changes would significantly limit shareholder access to management on important environmental, social and governance (ESG) issues that have an impact on a company's finances and reputation. The existing process ensures frivolous resolutions are eliminated, while also enabling shareholders the opportunity to engage with management on issues that may pose risks to companies. We believe it is important that the SEC be alerted to the opposition to this proposal. Portfolio 21 has lobbied Senator Ron Wyden (who serves on a committee with SEC oversight) to encourage the SEC to abandon changes to the existing Rule 14a-8. Additionally, Portfolio 21 believes it is important to reach out to companies we have worked with to alert them that this is a defining moment in company-investor relations and that we will view action to cripple our rights, via changes to Rule 14a-8, very seriously. We have asked these organizations to send a message to the SEC that supports leaving Rule 14a-8 unchanged.

7.6.07

Portfolio 21 supports the EPA Safer Detergent Stewardship Initiative

As part of our participation in the Investor Health Environmental Network, Portfolio 21 Investments joined other concerned investors and wrote to the Environmental Protection Agency (EPA) in support of the Safer Detergent Stewardship Initiative (SDSI) Program. The SDSI's objective is to recognize voluntary efforts in the for-profit business and non-profit communities to substitute safer surfactants.

6.29.07

Letter to Potlatch asking for clarification on GMOs

Portfolio 21 has a strict Biotechnology Policy that excludes the use of genetically modified organisms (GMOs) in agricultural applications. The Forest Stewardship Council (FSC) has a similar policy excluding GMO trees from its certified forestlands. Portfolio 21 wrote to Potlatch to obtain clarity on the company's use of language submitted to FSC in a 2005 report, and to ensure the company's forestry practices are in accordance with the FSC ban on GMOs.

6.8.07

Letter to United Natural Foods regarding the company's GMO labeling policy

Portfolio 21 was pleased to learn United Natural Foods recently announced the company will test its private-label food products to ensure they contain no genetically modified organisms. After testing is complete, we ask that the company use non-GMO labels on its products in order to educate customers and make use of this marketing advantage within the natural foods industry.

5.22.07

Letter to Intel regarding the company's lobbying against Oregon's Renewable Energy Act (SB 838)

Oregon's renewable energy bill aims to increase the use of renewable resources and establish Oregon as a leader in wind, solar and other energy sources. While Intel has made clear public statements that indicate its commitment to energy efficiency and the reduction of greenhouse gas emissions, we were disappointed to learn of Intel's lobbying against this bill. Portfolio 21 urged Intel to uphold its corporate responsibility and demonstrate leadership by supporting the bill. Fortunately, the Oregon Renewable Energy Act passed the legislature and was signed by Governor Kulongoski on June 6, 2007.

4.26.07

Portfolio 21 Investments supports Oregon's Climate Risk Legislation

As an investment management company, we strongly recommend that the State of Oregon address climate risk. We believe that climate risk is the greatest investment threat to both investors and companies. We believe the liabilities associated with climate risk are the greatest threat to Oregon's economy. We also believe there are opportunities for investors and companies taking a leadership role in addressing climate risk. Oregon has an opportunity to take a leadership position and to gain a competitive economic advantage if the State can implement meaningful climate risk strategies sooner rather than later.

2.1.07

Portfolio 21 is a signatory to the Carbon Disclosure Project

On February 1, 2007, the fifth information request from the Carbon Disclosure Project (CDP5) was sent to 2,400 of the largest global corporations, with Portfolio 21 as a signatory. The Carbon Disclosure Project (CDP) provides a secretariat for the world's largest institutional investor collaboration on the business implications of climate change. CDP represents an efficient process whereby many institutional investors collectively sign a single request for disclosure of information on greenhouse gas emissions from the largest public companies. Many of these responses are made public and can be viewed at www.cdproject.net