Company Profiles

Verbund

Austria

Verbund, an Austrian electricity generator and distributor, aims to be a "driving force for clean energy in Europe." Over 80% of the company's power is derived from small- and medium-scale hydropower with a small proportion from thermal (fossil fuel) generation. Since Verbund's power generation is primarily from renewable sources, the company's climate change footprint is relatively low when compared with its industry peers. Verbund is increasingly investing in wind and biomass energy production, and has modified one thermal generation plant to use sewage sludge as one of its fuel sources, resulting in even lower environmental impacts than hydropower. Unfortunately, the company does not disclose the extent of these investments. Portfolio 21 has asked Verbund to provide greater transparency regarding such investments, and the expected role of new renewable and distributed power generation in the company's growth strategy. These issues will become increasingly important as legislation requires that all Austrian waters meet criteria for being in "good ecological condition" by 2015, which will pose a challenge to Verbund's hydropower operations where these facilities affect the hydrological and ecological integrity of the surrounding areas.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 5/31/07 and may not reflect current opinions or subsequent events.