Environmentalists Unveil List of ‘Valdez Principles’

The Valdez principles, to be used by investors as a measure of a corporation’s commitment to safeguarding the environment, were announced Thursday by an environmental and social coalition.

The Coalition for Environmentally Responsible Economies, or CERES, said the 10 principles would be immediately circulated among major U.S. corporations for signatories.

CERES said it would monitor the adherence to the principles by corporations, whether they are signatories or not, and make public the results.

“This is a way for us to use our clout as consumers and investors to influence the way corporations deal with the environment,” said New York City Comptroller Harrison J. Goldin, who is a candidate for the Democratic nomination for mayor of New York.

Goldin said the city would incorporate the principles when considering its pension fund investments.

California Controller Gray Davis said in a press statement that he would propose to the state Legislature that it adopt the standards for California state pension fund investments.

Representative on Boards

The principles, named for the environmentally disastrous oil spill from the Exxon oil tanker Valdez in the Gulf of Alaska in March, address the release of pollutants, sustainable use of natural resources and reduction and disposal of waste.

They also address energy efficiency, risk reduction to employees and surrounding communities, the marketing of safe products and services, damage compensation and disclosure of potential environmental hazards.

The inclusion of an environmental representative on corporate boards and annual corporate environmental audits are also called for by the Valdez principles.

Joan Bavaria, co-chairperson of CERES, said the coalition’s membership represents about $100 billion in invested assets.

CERES said the Valdez principles are not intended as a disinvestment effort nor is it a negative campaign.

Rather, the coalition said it seeks to reward corporations that behave in a positive manner on environmental issues through the support of investments by individuals and pension plans.

The Valdez principles were drafted by the Sierra Club, the National Audubon Society and the Social Investment Forum, a national trade association of money managers, brokers, bankers and analysts.