When it comes to large corporations, nothing changes until change becomes profitable. It looks like it’s getting there.
The Investor Environmental Health Network (IEHN) – an organization representing 20 investment organizations and managing $22 billion in assets – has released a 52-page “Fiduciary Guide to Toxic Chemical Risk� offering an analysis of the financial impact litigation related to asbestos and other hazardous materials is having on the corporate landscape and the risk it poses to investors. Read the report here (PDF).
The guide is intended to help investors quantify the risk and avoid investing in endeavors that may be negatively affected by toxic tort lawsuits, like the ones that have devastated the asbestos industry.
“Poor corporate management of toxic hazards can increase risks for investors,� said the executive director of IEHN, Richard Liroff.
“Regulatory controls are tightening around the globe, not only in Europe but also in the U.S. states such as California, and in developing markets such as Korea and China. The failure to address safer materials is causing products to be locked out of markets. By contrast, corporate efforts to minimize or avoid exposures, or to offer safer alternatives, can benefit corporate bottom lines and reward investors.�
The Good News
When investors refuse to invest in products, services and processes with a high potential for eliciting a large number of toxic exposure lawsuits, product developers are forced to make their products safe.
Recent Changes
- Wal-Mart announced the launch of a new “preferred substances policy� that outlines a new approach the company will take regarding hazardous chemical management
- ConAgra Foods has agreed to examine and report on alternative packaging materials to materials containing the hazardous substance perfluorooctanoic acid
- Johnson & Johnson agreed to have discussions with the Campaign for Safe Cosmetics
And it doesn’t stop there.
Many companies are planning on taking steps in the right direction. Apple is expected to address toxicity concerns over its computers, CVS Pharmacies is expected to requests a report on the safety of its cosmetic products, Bed Bath & Beyond is expected to deal with its PVC and PFOA issues.
