The Valdez Principles, a Green code of conduct for companies
The following introduction is extracted from an article by Leonard Doyle in the Independent.
The US Green lobby has joined forces with a broad coalition of 'socially responsible' investors to launch a new campaign, known as the Valdez Principles, focused on domestic and international companies which are chronic polluters of the environment.
Named after the Exxon Valdez tanker oil-spill disaster in Alaska, the Valdez Principles consist of a voluntary code of conduct for the environment, based on the Sullivan Principles campaign for US companies operating in South Africa, and the US campaign against discrimination in Northern Ireland, known as the MacBride Principles.
The coalition of environmentalists and investors, which controls more than L300 billion in investments, includes 14 US environmental groups, numerous religious groups, hundreds of fund managers and the entire pension funds of California and New York City.
A sign of their strength came when the Exxon Corporation agreed to appoint an environmentalist to its board of directors in the wake of the Exxon Valdez oil spill. Environmentalists persuaded institutional investors holding 22 million shares in the company (about 1.7 per cent of the shares) to press for the appointment.
'We will take responsibility for any harm we cause to the environment'
Because of the high public profile in the environment, politicians are lining up to endorse draft legislation in several states, and shareholder resolutions are being presented to corporations, requesting that they comply with the new principles.
'Any company that ignores environmental precautions or fails to act responsibly as a steward of our biosphere will be the focus of shareholder action,' said Joan Bavaria, the head of the Coalition for Environmentally Responsible Economies (Ceres) which helped draft the principles.
Text of the Valdez Principles
By adopting these principles, we publicly affirm our belief that corporations and their shareholders have a direct responsibility for the environment. We believe that corporations must conduct their business as responsible stewards of the environment and seek profits only in a manner that leaves the Earth healthy and safe. We believe that corporations must not compromise the ability of future generations to sustain their needs.
'We believe that corporations must not compromise the ability of future generations to sustain their needs'
We recognise this to be a long term commitment to update our practices continually in light of advances in technology and new understandings in health and environmental science. We intend to make consistent, measurable progress in implementing these principles and to apply them wherever we operate throughout the world.
1) Protection of the biosphere
We will minimise and strive to eliminate the release of any pollutant that may cause environmental damage to the air, water, or earth or its inhabitants. We will safeguard habitats in rivers, lakes, wetlands, coastal zones and oceans and will minimise acid rain or smog, contributions to the greenhouse effect and depletion of the ozone layer, .
2) Sustainable use of natural resources
We will make sustainable use of renewable natural resources, such as water, soil and forest. We will conserve non-renewable natural resources through efficient use and careful planning. We will protect wildlife habitat, open spaces and wilderness, while preserving biodiversity.
3) Reduction and disposal of waste
We will minimise the creation of waste, especially hazardous waste, and wherever possible recycle materials. We will dispose of all wastes through safe and responsible methods.
4) Wise use of energy
We will make every effort to use environmentally safe and sustainable energy sources to meet our needs. We will invest in improved energy efficiency and conservation in our operations. We will maximise the energy efficiency of products we produce or sell.
5) Risk reduction
We will minimise the environmental, health and safety risks to our employees and the communities in which we operate by employing safe technologies and operating procedures and by being constantly prepared for emergencies.
6) Marketing of safe products and services
We will sell products or services that minimise adverse environmental impacts and that are safe as consumers commonly use them. We will inform consumers of the environmental impacts of our products or services.
7) Damage compensation
We will take responsibility for any harm we cause to the environment by making every effort to fully restore the environment and to compensate those persons who are adversely affected.
8) Disclosure
We will disclose to our employees and to the public incidents relating to our operations that cause environmental harm or pose health or safety hazards. We will disclose potential environmental, health or safety hazards posed by our operations, and we will not take any action against employees who report any condition that creates a danger to the environment or poses health and safety hazards.
9) Environmental directors and managers
At least one member of the board of directors will be a person qualified to represent environmental interests. We will commit management resources to implement these Principles, including the funding of an office of vice president for environmental affairs or an equivalent executive position, reporting directly to the chief executive officer, to monitor and report upon our implementation efforts.
10) Assessment and annual audit
We will conduct and make public an annual self-evaluation of our progress in implementing these Principles and in complying with all applicable laws and regulations throughout our worldwide operations. We will work toward the timely creation of independent environmental audit procedures which we will complete annually and make available to the public.
'The creation of independent environmental audit procedures which we will complete annually and make available to the public'
Launch of Valdez Principles in the UK
Institute director Guy Dauncey chaired a Green Alliance meeting at BP's conference centre at which Gordon Davidson, director of the Social Investment Forum in the States, introduced the Principles to the UK ethical investment community and to UK environmental groups.
The Confederation of British Industry (CBI)'s Environmental Business Forum in 1992 launched a six point programme, whereby its member companies agree to give a main board director responsibility for environmental matters, publish a policy statement, set clear targets for achieving the strategy, report progress publicly, ensure that employees understand the company's policy and help small businesses that cannot afford heavy overheads to improve their environmental performance. 'Without a clean record,' say the CBI, 'customers will not buy, bankers will not lend, insurers will not insure and people will not even apply for jobs.'
The European Commission also have a draft directive on civil liability for damage to the environment which would make companies and their banks jointly liable for clean-up costs. This is already frightening banks into directing their loans towards environmentally safe projects, in case they are left with heavy clean-up costs once a company has gone out of business.
- Gordon Davidson, Director, Social Investment Forum, Coalition for Environmentally Responsible Economies (CERES), 711 Atlantic Avenue, Boston, MA 02111, USA (tel 617 451 3252).
- Green Alliance (Julie Hill), 60 Chandos Place, London WC2N 4HG (tel 071 836 0341).
- The last two paragraphs of the above story are adapted from two news items in the Times.
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