2004 Company Dialogue

12.2.04

Ongoing dialogue with Baxter regarding the development of non-PVC products and feedback on sustainability reporting

Due to the health and environmental concerns associated with PVC there is growing demand for non-PVC products. On behalf of Portfolio 21 shareholders, we continue to engage Baxter on the issue of PVC in company products to reduce the environmental and health impacts of the company's operations and products. Through a shareholder dialogue involving other socially and environmentally concerned investors and the environmental group Health Care Without Harm, we are encouraging the company to demonstrate clear leadership to phase out PVC. The company is offering an increasing number of PVC-free products and reports that its growth can be attributed to increased sales of premixed and packaged drugs that for the most part use non-PVC containers. The company continues to develop non-PVC substitutes and we encourage Baxter to make every effort to speed the development process and to be a vocal leader globally in the replacement of PVC with alternatives.

11.15.04

Support for the Global Warming Draft Strategy produced by Oregon's Governor's Advisory Group

Portfolio 21 Investments fully supports action designed to reduce emissions of greenhouse gases. The Governor's Advisory Group created a Global Warming Draft Strategy that calls for setting greenhouse gas emission standards for cars, promoting energy efficiency, increasing energy from renewable sources and adopting a "carbon-content standard" that would cap and reduce the amount of global warming pollution contained in utilities' energy resource mix. As Portfolio 21 Investments has found it easy to cost-effectively reduce or mitigate the CO2 emissions associated with its business activities, it made sense that Portfolio 21 Investments provided feedback on this strategy, encouraging leadership to reduce the future implications of climate change. Our experience investing in companies that take environmental sustainability and specific issues such as energy efficiency seriously, leads us to believe this strategy could be implemented at a reasonable cost and in a manner that will provide a competitive advantage to businesses in this state while improving our environment for the benefit of all citizens.

10.27.04

Resolution with Whole Foods Market to label private brand products according to GE or non-GE content

Whole Foods has gone to considerable lengths to ensure that its private label products do not contain food grown from genetically engineered (GE) ingredients. However, the company has done little to promote its leadership in this area and we feel that it is failing to take advantage of a natural opportunity to enhance its market share, given consumer wariness of genetically engineered foods. As a result Portfolio 21, in conjunction with several other concerned stakeholders, co-filed a shareholder resolution calling on Whole Foods to adopt a policy to identify and label all Whole Foods private label products with respect to the presence or absence of GE ingredients.

10.15.04

Adobe Acceptance and Activism letter

Adobe is unusual in its inclusion in Portfolio 21 as the company makes negligible references to the environmental aspects of its business. However, Adobe is a leader in electronic communications, publishing and e-commerce technologies. When these clean technologies are used appropriately, they help individuals and businesses transition toward a sustainable society. Thus, we have accepted the company into Portfolio 21 based on the merits of its product offerings. We have been disappointed, however, with the company's lack of awareness and leadership in the environmental arena. We believe Adobe needs to take its direct environmental impact seriously, and that it needs to take a leadership role in promoting the potential environmental benefits of its products and services. We are committed to engaging Adobe regarding these issues on an ongoing basis.

5.5.04

Calling on financial companies to meet or beat Citigroup's policy commitments

The financial industry is one that needs to make big strides in incorporating principles of environmental sustainability into its business strategies. Citigroup's recent announcement of restrictions on finance projects with significant environmental impacts and its commitment to greenhouse gas emissions reporting is a great step (see below). We have encouraged other financial companies to meet or beat Citigroup's commitment. We sent letters to companies that we previously reviewed but failed to meet our selection criteria – Abbey National, Barclays, Chittenden, ING, Nordea, Royal Bank of Canada and Standard Chartered – as well as existing Portfolio 21 financial companies – Aviva, Deutsche Bank, HVB Group, Storebrand, Swedbank, Unicredito Italiano and Westpac.

4.27.04

Activism letter to Exxon regarding its need to address climate risks

While not a Portfolio 21 company, Portfolio 21 Investments wrote to Exxon due to our ongoing concern regarding the urgent need for action on climate change and Exxon's continued lack of attention to this issue. Exxon's February 2004 report on energy trends did little to address investor concerns around Exxon's position so we asked Exxon to clearly articulate its ideas and plans for how the company will address climate risk and move forward on low-emissions technologies.