Letter To Senate Signed By 34 Investors With Over $200 Billion Under Management
Krull & Company is proud to be among a coalition of investors calling on U.S Senators to uphold a recently established Environmental Protection Agency Clean Air Act Rule. The investors are urging the Senate to oppose Senator James Inhofe’s (R-OK) effort to prevent the EPA from implementing the Mercury and Air Toxics Standards for power plants. The rule would require significant reductions in power plant emissions, mostly by upgrading and retrofitting the older facilities that had been grandfathered by the original Clean Air Act.
The investor letter makes the case that the Mercury and Air Toxics rule will not only improve health and protect the environment, but will also create jobs. Experts estimate that the capital investments required to comply with these two Clean Air Act rules will add nearly 1.5 million jobs, or nearly 300,000 jobs per year on average over the next five years. Investment in air pollution control projects will create construction and manufacturing jobs with an impact across an industry supply chain with over 175 companies in 37 states.
“These rules will drive improved public health and create high-paying construction, installation, engineering, and manufacturing jobs, while retrofitting outdated, high-polluting power plants,” says Stu Dalheim, Vice President for Shareholder Advocacy at Calvert Investments. “We believe the electric power industry is well-positioned to comply with the rules without threatening electric system reliability.”
The coalition of investors points out that most of the largest coal-based electric power companies have stated that they are prepared to meet the requirements of the new rule, having made significant investments and improvements already. Given the major health benefits predicted and the economic activity that the required investment in power plant upgrades will generate, the EPA must be allowed to move forward with the rule, argue the investors.
The letter was coordinated by Calvert Investments, a member of the Investor Network on Climate Risk (INCR), a project of the non-profit organization, Ceres. Other signatories to the letter include a number of other INCR members, such as Walden Asset Management, Domini Social Investments LLC, and F&C Management Ltd.
We recently became a signatory of the National Climate Ethics Campaign’s Climate Moral Obligation Statement. We do believe that we have a moral and ethical obligation, as the wealthiest nation in the world, to do everything we can to address the issue. This is not only for our nation, but also for nations that don’t have our resources; for this generation and for generations unborn.
As socially & environmentally responsible investment advisors, we see this as both an obligation and an opportunity. We want to own companies that are being proactive about reducing their climate impact, and use our shareholder clout to push other companies to integrate climate responsibility into their strategies.
Here’s the text of the Statement:
STATEMENT OF OUR NATION’S MORAL OBLIGATION
TO ADDRESS CLIMATE CHANGE
We, the undersigned current and former elected officials and representatives from the business, labor, youth, financial, mental health, physical health, conservation, racial justice, civil rights, and faith communities of the United States, recognize that climate change is a real, dangerous, and rapidly worsening problem with deep moral implications.
Although reducing carbon pollution will have costs, it will also produce incalculable benefits. Our response must therefore be driven not solely by near-term economic or national self-interest. We must also acknowledge and act on our long-standing moral obligation to protect current and future generations from suffering and death, to honor principles of justice and equity, and to protect the great Earth systems on which the wellbeing of all life, including ours, depends.
We call on every citizen to act on these moral principles without delay. Individually, and collectively as a nation, we must rapidly reduce carbon pollution by significant levels, prepare for the consequences of an already warming planet, and insist on public policies that support these goals and create a just transition to a low-carbon economy. The risks of inaction are exceedingly high. The benefits of acting on these moral principles are even greater.
The Moral Obligation to Prevent Suffering and Protect Human Life
The most fundamental of our guiding moral principles is that it is wrong to unjustifiably cause human suffering or death. Climate change-related impacts are already harming and killing people here and abroad. Unless carbon pollution is rapidly reduced, the resulting natural disasters, floods, diseases, illnesses, water and food shortages, and environmental degradation, along with associated rising violence and social breakdown, will injure or kill millions more every year.
Climate change-induced suffering from food shortages and the dramatic spread of disease and illness will be especially significant. Millions of people worldwide will be affected. Suffering will also result from the job losses and disruptions to families and communities caused by the billions of dollars in direct and indirect annual costs of climate impacts, as well as from the escalating market volatility, supply chain disruptions, and other impacts businesses will experience.
Over the past century, the U.S. has been the world’s largest overall contributor to climate change, generating about 30 percent of the total energy-related CO2 emissions that are destabilizing the climate. Today, we continue to produce far more emissions on an annual basis than any other nation except China. Even if the costs are high, we must avert one of the worst violations of human rights the world has ever seen by acknowledging our contribution to the climate crisis and significantly reducing our emissions.
The shift to a low carbon economy can create millions of good jobs that support healthy families and communities. This requires a ‘just transition’ that spreads the investments in solutions and the benefits of new approaches equitably, enables whole industries to make the changes needed, provides adequate resources for workers and communities adversely affected by the shift and ensures that all Americans have a democratic voice in their workplaces and their communities in how those decisions are made.
The Moral Responsibility to Honor Principles of Justice and Equity
Those who suffer the most from climate change are not the same people who now benefit greatly from the overuse of fossil fuels and other natural resources. As a matter of justice and equity, we have a moral obligation to reduce our carbon pollution in order to prevent suffering and death among people who have contributed little to climate change but who are, at least initially, most impacted: those living in the Arctic; people in less developed, hotter regions of the world; low-income and working-class communities; communities of color; women as well as children in the U.S.; and future generations everywhere.
In addition, even as we reduce our emissions we must do our part to ensure that vulnerable populations and nations have the financial and technological capacity to prepare for and adapt to the consequences of a warming planet and grow clean energy economies.
The Moral Obligation to Honor and Protect the Processes that Make Life Possible
Because we have a moral obligation to protect human life and prevent suffering and injustice, and because Earth’s gifts have intrinsic value, we have a responsibility to protect the ecosystems and organisms that provide the air we breathe, the food we eat, the water we drink, the materials we use to sustain life and prosperity, and the natural beauty that lifts our spirits.
Whether we believe that the Earth and its great abundance is a product of natural processes or, as millions of people nationwide believe, that the Earth is the gift of the Creator, or both, our obligations are fundamentally the same–we must be good stewards of what we have inherited. Humanity is not in command of creation, but merely part of it. To disrupt the climate that is the cornerstone of all life on Earth and to squander the extraordinary abundance of life, richness, and beauty of the planet is morally wrong.
We Already Have the Know-How and Tools
The people of our great nation have the spirit, knowledge, and tools required to reduce climate change. The greatest obstacle is lack of human will. History is watching us. Our legacy will be determined by what we do now and in the next few years.
We call on everyone in the U.S. to act on their moral principles now by rapidly and significantly reducing greenhouse gas emissions in their homes, places of work and government.
We call on every citizen to actively prepare for the consequences of climate change.
Moreover, we urge every citizen to insist that their government adopt policies to foster emission reductions and prepare for climate change, and to provide sufficient resources to build the capacity of the most impacted people worldwide to do the same.
This is not just about avoiding harm. Acting on our moral principles will foster the growth of a sustainable economy that creates millions of good jobs in clean energy fields, supports healthy families, and builds vibrant communities. That, itself, makes this imperative.
The need for action is urgent, the possibilities enormous. Please join us in heeding this call.
A good friend forwarded me an Op-Ed in the New York Times today. It questions the logic of rewarding bankers with bonuses – those same bankers who decimated the economy by making excessively risky bets. The writer’s contention is that the bankers have little to no downside risk, and so there is no disincentive – only the knowledge that they will be bailed out again.
I agree that there needs to be more accountability within the industry. There has been virtually no legal action taken in the wake of the mortgage crisis and subsequent economic crash. In most cases, the same people who who led us into disaster, are the exact same ones leading now. The bonuses should go away, as should the extreme risk-taking. As the author says, leave the extreme risk to the hedge funds.
This is all the more reason to ask the provocative questions, to not allow the traditional Wall Street firms to dictate your financial future. Move away from the big firms and find a small firm that is aligned with who you are and what you stand for.
I received a completely unexpected email from a friend/acquaintance in Roanoke, VA this morning. It was one of those times when I was left completely speechless, the words of gratitude it expressed went straight to my heart. Here’s the text of the email:
Just a quick note to say: Thanks!!!! One year ago at the Energy Expo in Roanoke, after hearing what my longterm plans and goals were, you asked me: “Why is this in the future? Why not now?” That question changed my life. Shortly afterward (the same day) I approached Barry and told him that we should go into business together. Today Barry and I are partners in Better Building Works, LLC. We’re excited and busy! Thanks for that one important question.
It’s been said, that if you can say, when you die, that you’ve changed somebody’s life, that you’ve lived a life worth living. I’m grateful, that in the position I’m in, I’ve had the opportunity to hear those wonderful words more than once. And every day, I do everything I can to provide peace of mind for my clients, and inspiration & leadership to those around me.
If someone has made a difference in your life, reach out to them. And, if you haven’t thanked them yet, do so now!
I challenge our clients & friends to go out and make a difference – in your own lives and the lives of others. Ask the tough & provocative questions; realize that it’s time to stop waiting for the ideal time to follow your dreams; give a hug; simply do the right thing; say Thank You!
It’s one thing for us environmentalists to preach energy conservation and efficiency. It’s another thing for the top retired US military leaders to call for “immediate, swift and aggressive action” to reduce oil consumption. This is good to see. Maybe they’re not looking at it from the same environmental perspective, but they’re discussing it nonetheless!
What this tells me is that once you move beyond the hyper-partisanship we currently see, there are a lot of common issues. Motivations don’t necessarily need to be the same, but the intent to make things better for all of us needs to be the driving factor.
The Supreme Court’s Citizens United decision in 2010 paved the way for unlimited anonymous corporate campaign contributions. I’m of the opinion that only living, breathing, VOTING Americans should have the opportunity to make contributions. The idea that a corporation, which has tremendously more resources than most ordinary Americans, can be so influential in our elections is inherently flawed.
Corporations are made up of people – each of whom has the right and opportunity to contribute to election campaigns. Citizens United, in effect, gives those running corporations twice as much power to make influential contributions. And let’s face it, even though most politicians say that campaign contributions do not make them beholden, the evidence proves otherwise!
The Socially Responsible Investing industry has been a loud opponent of corporate campaign spending. We recently sent a letter to the SEC providing detailed comments to the rulemaking petition submitted by the Committee on Disclosure of Corporate Political Spending in August. Our letter was submitted on behalf of a coalition of international investors managing more than $690 billion. Krull & Company is a signatory on the letter.
Yesterday, a group of Senators introduced a constitutional amendment that would give Congress the ability to regulate federal campaign spending. This would circumvent the Citizens United case and give them the ability to introduce legislation limiting spending to, like I said, living, breathing, VOTING Americans. It would be a tremendous move in giving political power back to the people.
I believe in taking a stand for your principles. The Asheville Citizen-Times reported today that the Asheville Chamber of Commerce will not be renewing it’s association with the US Chamber of Commerce. This is a gusty move that should be applauded. The US Chamber has become more and more partisan over the past several years and spends millions of dollars in it’s attempt to influence elections. It has come out as a climate change skeptic, and actively worked against health care reform.
The US Chamber of commerce does not represent the needs and views of the Asheville Chamber or it’s members. Again, I applaud Asheville for taking a stand.