Socially responsible investment
TXU challenged on attitude to carbon emissions
TXU, the US electricity company, has been hit with a raft of shareholder
resolutions relating to its plans to build 11 new pulverised coal-burning power
plants in Texas. Two resolutions – filed by five
New York City pension funds and
the Connecticut State Treasurer’s Office
– note that the new plants would double TXU’s carbon emissions, and request
reports on how TXU is responding to regulatory pressure to reduce these
emissions.
A further resolution, tabled by the
Benedictine Sisters of Boerne, calls on the company to adopt specific goals
to reduce carbon dioxide emissions to below 2004 levels, and to reduce mercury
levels using control technologies.
Rainforest Action Network (RAN) has written to
54 financial institutions asking them to withhold financing for TXU’s power
stations. As well as warning that the TXU project is a “risky transaction”, RAN
called on the banks to shift their investments away from energy sources such as
coal and nuclear, and towards renewable energy sources such as wind and solar.
Denise Nappier, Connecticut state treasurer, said as TXU moves ahead with its
$10bn investment in the new power plants, shareholders need to know whether the
company is taking into account impending regulation of carbon emissions and
increased consumer interest in electricity efficiency.
Links
TXU
New York City Pension Funds
Connecticut State Treasurer’s Office
Benedictine Sisters of Boerne
Rainforest Action Network
January, 2007 |