WASHINGTON, DC - November 15, 2007 - More than two-dozen leading investors, who manage retirement funds for millions of Americans, today sent a letter to Congress urging passage of a national energy bill that includes strong measures for expanding clean energy, reducing oil dependence and curbing global warming pollution.
The letter, sent to Senate and House leaders as they are negotiating a compromise measure, recommends specific language to improve energy efficiency, accelerate renewable energy and boost vehicle fuel economy standards. The investors collectively manage more than $1.4 trillion in assets.
"We call on Congress to pass an Energy Bill that realigns national policies and incentives to stimulate the rapid deployment of clean technologies," wrote the 29 investors and asset managers, many of whom are part of the Investor Network on Climate Risk (INCR), an alliance of U.S. and European investors focused on addressing the risks and opportunities posed by climate change. "The federal clean energy policies we support are critical first steps in addressing one of the greatest risks facing investors, the threat of global climate change."
The letter was signed by many of the nation's largest institutional investors, including state treasurers and comptrollers overseeing pension funds in California, Connecticut, Michigan, New Jersey, New York, New York City, North Carolina and Oregon. London-based F&C Asset Management also signed the letter, which was coordinated by Ceres and Calvert Group Ltd.
In sending the letter, investors sent a strong message that regulatory uncertainty and the lack of federal regulations to spur clean energy is discouraging investment in low-carbon, climate-friendly technologies that will flourish in the years ahead. The letter noted that renewable energy investments hit a record $100 billion in 2006, with a growing portion of those investments taking place in China, India and Brazil.
"Every year the U.S. fails to enact strong federal energy policies is a missed opportunity to spur much-needed investments that will create jobs, lessen our dependence on fossil fuels, capitalize on our global technological advantages and reduce carbon emissions at the same time," wrote the investors.
The letter was sent to Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, Speaker of the House Nancy Pelosi and House Minority Leader John Boehner. Each chamber has approved an energy bill that tackles portions of what the investors are seeking, but neither covers all three of the priorities highlighted in the letter.
The letter requests:
A strong renewable electricity standard that would boost production of wind, biomass, geothermal and solar energy across the country.
Strong energy efficiency incentives and standards, which would achieve the easiest, most cost effective reductions in greenhouse gas emissions. The American Council for an Energy Efficient Economy (ACEEE) estimates that standards for lighting alone could reduce global warming pollution by 100 million metric tons in 2030, while saving consumers and businesses billions of dollars.
Increased fuel economy standards through strong Corporate Average Fuel Economy (CAFE) regulations, which have not been significant raised since the mid-1970s. According to a new Citigroup report, a 35 mile per gallon fleet by 2020 in the United States is not only feasible but could generate profit growth for automakers, including US automakers.
"A weak energy bill will continue our reliance on outdated, high-polluting technologies that will be less competitive as the global economy shifts to low-carbon technologies," said Mindy S. Lubber, president of Ceres and director of the INCR. "A strong energy bill will accelerate investments in clean energy technologies that hold great promise for investors and their beneficiaries."
List of 30 signers:
California State Teachers Retirement System (CalSTRS) California Public Employees Retirement System (CalPERS) California State Controller California State Treasurer Connecticut State Treasurer Municipal Employees Retirement System of Michigan North Carolina State Treasurer New York State Comptroller New Jersey State Investment Council New York City Comptroller Oregon State Treasurer Vermont State Treasurer Rhode Island State Treasurer Calvert Group, Ltd. F&C Asset Management Domini Social Investments Trillium Green Century Pax World Management Corp Ethical Funds Tri-State Coalition for Responsible Investment Winslow Management Company Walden Asset Management (a division of Boston Trust) Boston Common Asset Management, LLC Vermont Community Foundation As You Sow Foundation Krull & Company Province of St. Joseph of the Capuchin Order Unitarian Universalist Association Ceres
About Ceres:
Ceres is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as climate change. Ceres also directs the Investor Network on Climate Risk. For more information, visit http://www.ceres.org and http://www.incr.com
About Calvert:
Calvert is one of the nation's largest socially responsible mutual fund firms with approximately $16 billion in assets under management. Calvert offers 41 funds that allow individual and institutional investors to pursue a broad range of investment objectives within a single fund family. Calvert launched the Calvert Social Index(R), a benchmark for measuring the performance of large, U.S.-based socially responsible companies. In addition to its equity funds, Calvert has an extensive lineup of tax-free and taxable fixed income investments. For more information on Calvert, click on www.calvert.com.