| "Major Step Forward" Seen in DuPont Shareholder Vote (26/4/2006) | |
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Christian Brothers Investment Services, Inc. manages more than $4 billion globally. The 7.3 percent of DuPont shareholders siding with the CBIS resolution represents over $1.5 billion in shareholder equity "Major Step Forward" Seen in DuPont Shareholder Vote on Genetically Modified Organisms (GMO) Disclosure Resolution to Keep Initiative by Christian Brothers Investment Services Alive Christian Brothers Investments, Other Groups Will Continue to Insist on DuPont Satisfying Duty to Disclose Potential Risks to Shareholders WILMINGTON, Del., April 26 /PRNewswire/ -- Christian Brothers Investment Services (CBIS) said today that it has achieved a "major step forward" with the 7.3 percent of DuPont shareholders who voted in favor of a resolution urging the company to disclose any potentially material risk or "off-balance sheet liability" that could be posed by its manufacturing and distribution of food-related genetically modified organisms (GMOs). With more than 480 million shares voting, the 7.3 percent of DuPont shareholders siding with the CBIS resolution represents over $1.5 billion in shareholder equity. Reflecting what is almost always a multi-year process of building shareholder awareness and support, CBIS only needed 6 percent of shareholders to support the GMO-related resolution in order for it to be reintroduced for DuPont's 2007 annual meeting. As the CBIS resolution notes, a wide variety of government, industry and scientific experts have raised concerns about the lack of adequate testing and controls in place in relation to the GMOs unleashed by DuPont and other firms. Recent reports also have raised potential health concerns -- including increased incidence of allergies -- that could result from the introduction of GMOs into agriculture and the food supply. John K. S. Wilson, director of socially responsible investing at Christian Brothers Investment Services, Inc., said: "Today's vote gives CBIS and other concerned groups considerable new leverage to keep up the pressure on DuPont to determine and disclose the potential risks associated with genetically modified agriculture. Our sole goal here is to avoid a repeat of the Teflon controversy, which was brought about when DuPont inaccurately asserted the safety of perfluorooctanoic acid (PFOA) over many decades. At a minimum, DuPont has an obligation to start acknowledging to its shareholders that there are valid concerns here about potential risks associated with GMOs." In addition to citing recent health concerns and regulatory problems with GMOs, the CBIS resolution stated: "Disclosure of material information is a fundamental principle of our capital markets. Investors, their confidence in corporate bookkeeping shaken, are starting to scrutinize other possible 'off- balance sheet' liabilities, such as risks associated with activities harmful to human health and the environment, that can impact long-term shareholder value. SEC reporting requirements include disclosure of environmental liabilities and of trends and uncertainties that the company reasonably expects will have a material impact on revenues. Public companies are now required to establish a system of controls and procedures designed to ensure that financial information required to be disclosed in SEC filings is recorded and reported in a timely manner." The CBIS resolution urged that DuPont's "board of directors review and report to shareholders by the 2007 annual meeting on the company's internal controls related to potential adverse impacts associated with genetically modified organisms, including: reviewing the adequacy of current post- marketing monitoring systems; retaining an independent environmental expert to review the effectiveness of established risk management processes; and examining possible impact on seed product integrity." In outlining the potential risks surrounding DuPont GMOs, the CBIS resolution goes on to point out: "'Gone to Seed' [from the Union of Concerned Scientists] reports that genetically engineered DNA is contaminating U.S. traditional seed stocks of corn, soybeans and canola, and that if left unchecked could disrupt agricultural trade, unfairly burden the organic foods industry, and allow hazardous materials into the food supply ... Insurers in Germany, the UK and elsewhere are refusing liability coverage for genetically engineered (GE) crops, demonstrating heightened concern about the long-term safety of GE crops." Christian Brothers Investment Services, Inc. (http://www.cbisonline.com) manages more than $4 billion, combining faith and finance in the responsible stewardship of Catholic financial assets. CBIS' combination of premier institutional asset managers, diversified product offerings, and careful risk- control strategies constitutes a unique investment approach for Catholic institutions and their fiduciaries. CBIS strives to integrate faith-based values into the investment process through a disciplined approach to socially responsible investing that includes principled purchasing (stock screens), active ownership strategies (proxy voting, dialogues, and shareholder resolutions) and community investment. The firm contributes a portion of all profits to support the Church's educational and social ministry. Source: Christian Brothers Investment Services, New York, NY |
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