TSCA Investor Letter 9-27-10 final - Henderson Global Investors
TSCA Investor Letter 9-27-10 final - Henderson Global Investors
TSCA Investor Letter 9-27-10 final - Henderson Global Investors
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September <strong>27</strong>, 20<strong>10</strong><br />
The Honorable Barbara Boxer, Chairman<br />
The Honorable Frank M. Inhofe, Ranking Member<br />
U.S. Senate Committee on Environment and Public Works<br />
The Honorable Frank R. Lautenberg, Chairman<br />
Subcommittee on Superfund, Toxics and Environmental Health,<br />
U.S. Senate Committee on Environment and Public Works<br />
The Honorable Henry A. Waxman, Chairman<br />
The Honorable Joe Barton, Ranking Member<br />
U.S. House of Representatives Committee on Energy and Commerce<br />
The Honorable Bobby L. Rush, Chairman<br />
The Honorable Ed Whitfield, Ranking Member<br />
Subcommittee on Commerce, Trade and Consumer Protection,<br />
U.S. House of Representatives Committee on Energy and Commerce<br />
Dear Senators Boxer, Lautenberg and Inhofe, and Mr. Waxman, Barton, Rush and<br />
Whitfield,<br />
As investors with $35 billion in assets under management, we are writing to urge your<br />
support for substantial reform of the Toxic Substances Control Act of 1976 (<strong>TSCA</strong>). We<br />
specifically endorse S. 3209, the Safe Chemicals Act of 20<strong>10</strong> and H.R. 5820, the Toxic<br />
Chemicals Safety Act of 20<strong>10</strong> as the best legislation for achieving comprehensive <strong>TSCA</strong><br />
reform.<br />
Reform will:<br />
• bolster productivity and reduce health care costs<br />
• reduce overhead costs to business from managing toxic chemicals<br />
• promote the international competitiveness of American business<br />
• stimulate and reward innovation in products and industrial processes<br />
• lower market risks to companies and shareholders<br />
The principal goals of reform should be:
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• fast-track regulatory action on well-studied chemicals, especially those that are<br />
prime candidates for restriction or elimination in international markets,<br />
particularly Europe<br />
• increase available information on chemical toxicity to reduce burdens on<br />
downstream manufacturers and retailers who want to reduce and eliminate toxic<br />
hazards in their products and supply chains<br />
• provide incentives for green chemistry, including expedited approval of chemicals<br />
with reduced toxicity profiles<br />
• incorporate strong “hot spot” provisions that identify and reduce hazards in<br />
communities disproportionately burdened by toxic chemicals such as Mossville,<br />
Louisiana<br />
• set a safety standard that protects the very young and other especially vulnerable<br />
populations from the low doses of chemicals and chemical mixtures encountered<br />
in every-day life.<br />
Exposures to toxic chemicals produce a tremendous drag on the US economy,<br />
contributing to health problems throughout supply chains. Data continue to mount on<br />
chemicals in fetuses’ cord blood, amniotic fluid, breast milk and blood. Chemical<br />
exposures have been linked by scientists to various forms of cancer, learning and<br />
developmental disabilities, Alzheimer’s and Parkinson’s diseases, reproductive health<br />
and fertility problems, and asthma.<br />
Savings in health care costs from reducing exposures vary among studies, but routinely<br />
add up to billions of dollars annually. Chemical exposures lower worker productivity and<br />
raise corporate health care costs. Chemical exposures, especially those leading to<br />
neurological impairment, can relegate to the social welfare system individuals who<br />
otherwise could be productive contributors to the workplace. The most toxic chemicals<br />
also impose considerable overhead costs on companies. Costs include record-keeping,<br />
special handling and disposal, and accident prevention and response. As widely<br />
diversified investors we are concerned about the impact of these costs on the value of our<br />
portfolios.<br />
Safer chemicals and materials can reduce or eliminate these costs. <strong>TSCA</strong> reform that<br />
speeds action on chemicals of concern whose toxicity is well-established can accelerate<br />
this cost reduction. It can also lower companies’ litigation, reputational, and compliance<br />
risks. History shows that toxic liabilities in a company’s portfolio can lead to significant<br />
litigation risk that negatively impacts shareholder value.<br />
Companies are increasingly facing risks of “toxic lockout” from marketplaces, caught in<br />
a vise of, on one side, increased government regulations and, on the other side,<br />
restrictions by “retail regulators” adopting environmentally preferable purchasing<br />
programs. The European Union, individual European nations, various U.S. states, large<br />
retailers, health care companies, and companies in many other sectors have outdistanced<br />
the U.S. federal government in removing chemicals from the market place. <strong>TSCA</strong> needs<br />
to be strengthened to align it with these other leading efforts—speeding chemical<br />
management decisions and promoting data development and disclosure. Reform requires
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a federal law that contributes to innovation and competitiveness in the marketplace rather<br />
than serving as a bulwark impeding change.<br />
Changes in data development and disclosure can especially assist those companies eager<br />
to reduce their “toxic footprint”. Regrettably, because of weaknesses in <strong>TSCA</strong>,<br />
such companies have encountered major challenges in identifying the chemicals in their<br />
products and supply chains and gathering information about the toxic hazards associated<br />
with those substances. These challenges have been well-documented in assessments by<br />
organizations such as the Green Chemistry and Commerce Council and the<br />
Business/NGO Working Group on Safer Chemicals and Materials.<br />
Kaiser-Permanente’s Vice President for Workplace Safety and Environmental<br />
Stewardship, Kathy Gerwig, undoubtedly spoke for many companies when she stated in<br />
testimony before both House and Senate committees on chemical policy reform,<br />
“Mechanisms are needed to support downstream users in procuring the safest products<br />
and materials for our needs.” Ms. Gerwig’s views were echoed by Construction<br />
Specialties’ Vice-President and General Manager Howard Williams in testimony on H.R.<br />
5820. He commented, “Disclosure to commercial purchasers sends essential information<br />
down the supply chain to the product developer…restricting the use of and exposures to<br />
chemicals of concern…and promoting safer alternatives to them creates markets that are<br />
sustainable to businesses, consumers and the environment….It’s a time for innovation<br />
and product development. And a time for domestic and international business growth.”<br />
A core goal for the Safe Chemicals Act of 20<strong>10</strong>/Toxic Chemicals Safety Act of 20<strong>10</strong><br />
should be to move American business swiftly away from 20 th Century chemistry, with its<br />
legacy of Superfund sites, impaired human health, and damaged ecosystems, to greener<br />
21 st Century chemistry that will better serve the long term well-being of business,<br />
humanity, and Planet Earth. As Howard Williams commented in his testimony, “Cancer,<br />
Parkinson’s, Leukemia, Autism, Alzheimer’s and Endometriosis are non-partisan.”<br />
We look forward to working with you and your colleagues as you move expeditiously<br />
toward establishing these essential policies. In the meantime, please do not hesitate to<br />
contact Richard Liroff, Executive Director, <strong>Investor</strong> Environmental Health Network, at<br />
(703) 532-2929 or via e-mail at rliroff@iehn.org or David Levine, American Sustainable<br />
Business Council, 202-595-9302 dlevine@asbcouncil.org with any questions or for<br />
further information.<br />
Sincerely yours,<br />
Bennett Freeman<br />
Senior Vice President for Sustainability Research and Policy<br />
Calvert Asset Management Company, Inc.<br />
Bethesda, MD<br />
Julie Fox Gorte, Ph.D<br />
Senior Vice President for Sustainable Investing<br />
PaxWorld Management LLC
Portsmouth, NH<br />
Timothy Smith<br />
Senior Vice President, Environmental, Social and Governance Group<br />
Walden Asset Management, a division of Boston Trust & Investment Management Company<br />
Boston, MA<br />
Jonas Kron, Esq.<br />
Vice President, Deputy Director<br />
ESG Research & Shareholder Advocacy<br />
Trillium Asset Management Corporation<br />
Boston, MA<br />
Lauren Compere<br />
Senior Vice President<br />
Boston Common Asset Management<br />
Boston, MA<br />
Jerome L. Dodson<br />
President and Founder<br />
Parnassus Investments<br />
San Francisco, CA<br />
Kristina Curtis<br />
Senior Vice President<br />
Green Century Capital Management<br />
Boston, MA<br />
Steve Schueth<br />
President<br />
First Affirmative Financial Network, LLC<br />
Colorado Springs, CO<br />
Bruce Herbert<br />
Chief Executive<br />
Newground Social Investment<br />
Seattle, WA<br />
Judith L. Seid, CFP<br />
President<br />
Blue Summit Wealth Management<br />
San Diego, CA<br />
G. Benjamin Bingham<br />
Managing Director<br />
Benchmark Asset Managers, LLC<br />
Philadelphia, PA<br />
Jackson Robinson<br />
Founder and Chief Investment Officer<br />
Winslow Management, a Brown Advisory Investment Group<br />
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Boston, MA<br />
Leslie E. Christian, CFA<br />
President and CEO<br />
Portfolio 21 Investments<br />
Portland, OR<br />
Michael Passoff<br />
Senior Program Director<br />
Corporate Social Responsibility Program<br />
As You Sow<br />
San Francisco, CA<br />
Wendy S. Holding<br />
Trustee and Portfolio Manager<br />
The Sustainability Group<br />
Boston, MA<br />
Peter W. Krull<br />
President<br />
Krull & Company<br />
Darien, GA<br />
Sonia Kowal<br />
Director of Socially Responsible Investing<br />
Robert Brooke Zevin Associates<br />
Boston, MA<br />
Jon Quigley<br />
Managing Partner, Portfolio Management<br />
Advanced Investment Partners<br />
Safety Harbor, FL<br />
Frank Rauscher<br />
Senior Principal<br />
Aquinas Associates<br />
Dallas, TX<br />
Patricia Daley, OP<br />
Executive Director<br />
Tri-State Coalition for Responsible Investment and<br />
Sisters of St Dominic of Caldwell, NJ<br />
Caldwell, NJ<br />
Sister Jean Amore CSJ<br />
President<br />
Sisters of St. Joseph of Brentwood<br />
Brentwood, NY<br />
Kathryn McCloskey<br />
Director, Corporate Social Responsibility<br />
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United Church Funds<br />
New York, NY<br />
Sr. Rosemary Ryan, MMS<br />
Coordinator—Sector North America<br />
Medical Mission Sisters<br />
Philadelphia, PA<br />
Nora M. Nash, OSF<br />
Director, Corporate Social Responsibility<br />
Sisters of St Francis of Philadelphia<br />
Aston, PA<br />
Margaret Weber<br />
Corporate Responsibility Director<br />
Congregation of St. Basil<br />
Detroit, MI<br />
Cathy Rowan<br />
Corporate Responsibility Coordinator<br />
Maryknoll Sisters<br />
Bronx, NY<br />
Ruth Kuhn, SC<br />
Coordinator<br />
Region VI Coalition for Responsible Investment<br />
Ohio, Kentucky, Tennessee and<br />
Chair<br />
Sisters of Charity of Cincinnati – Corporate Responsibility Committee<br />
Cincinnati, OH<br />
Judy Byron, OP<br />
Director<br />
Northwest Coalition for Responsible Investment<br />
Seattle, WA<br />
Diana Oleskevich CSJA<br />
Justice Coordinator<br />
Sisters of St. Joseph of Carondelet and Associates<br />
St. Louis Province<br />
St. Louis, MO<br />
Eileen Gannon, OP<br />
Executive Team Member<br />
Dominican Sisters of Sparkill, New York<br />
Sparkill, NY<br />
Sister Helen McDonald, American Province Leader,<br />
Society of the Holy Child Jesus<br />
Rosemont, PA<br />
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Ethel Howley, SSND<br />
Social Responsibility Resource Person<br />
School Sisters of Notre Dame Cooperative Investment Fund<br />
Wilton, CT<br />
Susan Vickers, RSM<br />
Vice President, Community Health<br />
Catholic Healthcare West<br />
San Francisco, CA<br />
Kathleen Coll, SSJ<br />
Administrator, Shareholder Advocacy<br />
Catholic Health East<br />
Newtown Square, PA<br />
Roslyn M. Brock, Vice President<br />
Advocacy and Government Relations<br />
Edward Gerardo, Director<br />
Community Commitment and Social Investments<br />
Sr. Rosemary Moynihan, Director<br />
Ecology and <strong>Global</strong> Ministries<br />
Bon Secours Health System, Inc.<br />
Marriottsville, MD<br />
Stephen Viederman<br />
Finance Committee<br />
Christopher Reynolds Foundation<br />
New York, NY<br />
Barbara Aires<br />
Coordinator of Corporate Responsibility<br />
Sisters of Charity of Saint Elizabeth<br />
Convent Station, NJ<br />
Barbara Jennings, CSJ<br />
Coordinator<br />
Midwest Coalition for Responsible Investment<br />
St. Louis, MO<br />
Mark Regier<br />
Director of Stewardship Investing<br />
MMA Praxis Mutual Funds<br />
Goshen, IN<br />
Valerie Heinonen, o.s.u.<br />
Director, Shareholder Advocacy<br />
Dominican Sisters of Hope<br />
Mercy Investment Services, Inc.<br />
Ursuline Sisters of Tildonk, U.S. Province<br />
New York, NY<br />
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The Rev. Séamus P. Finn, OMI<br />
Director, Justice, Peace Integrity of Creation Office<br />
Missionary Oblates of Mary Immaculate<br />
Washington, DC<br />
Diana Oleskevich CSJA<br />
Justice Coordinator<br />
Sisters of St. Joseph of Carondelet<br />
and Associates<br />
St. Louis Province<br />
St. Louis, MO<br />
Constance Brookes<br />
Executive Director<br />
Friends Fiduciary Corporation<br />
Philadelphia, PA<br />
Gwen Farry, BVM<br />
Sisters of Charity, BVM<br />
Chicago, IL<br />
Dan Apfel<br />
Executive Director<br />
Responsible Endowments Coalition<br />
New York, NY<br />
Michael Whelchel<br />
Founder & Partner<br />
Watershed Capital<br />
Asheville, NC<br />
David Price<br />
Executive Director<br />
Nuestra Comunidad Development Corporation<br />
Roxbury, MA<br />
Karen Meidlinger<br />
Founder and Managing Principal<br />
Meidlinger Partners<br />
Philadelphia, PA<br />
Michael Lent<br />
Co-Founder, Chief Investment Officer, and Principal<br />
Veris Wealth Partners<br />
New York, NY<br />
Vince Siciliano<br />
President & CEO<br />
New Resource Bank<br />
San Francisco, CA<br />
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Stephen Blessman<br />
Founder<br />
EDB Organization<br />
Chicago, IL<br />
Seb Beloe<br />
Head of SRI Research<br />
<strong>Henderson</strong> <strong>Global</strong> <strong>Investor</strong>s<br />
London, UK<br />
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