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New Innovest Report Reveals Value at Risk from Toxic Chemicals in Company Products

New Innovest Report Reveals Value at Risk from Toxic Chemicals in Company Products

Published 02-08-07

Submitted by Innovest Strategic Value Advisors, Inc.

Electronics, cosmetics, and pesticide manufacturers are among the many companies that could face loss of market share and access to major markets due to "toxic lockouts" according to a new report just issued by Innovest Strategic Value Advisors, Inc. The International investment research firm examines this double-sided issue as well as other risks in four industry sectors (Household and Personal Care Products, Multi-Line Retail, Healthcare Equipment and Supplies and Household Durables) in their most recent analysis just released today.

Innovest’s report, Cross-Cutting Effects of Chemical Liability from Products, offers a pioneering analysis comparing companies’ chemical management policies. "This is an issue for the value investor" said Senior Analyst Heather Langsner. "Those concerned with the long-term viability of the brand and future competitive value of these and other large cap firms will need this information to understand potential challenges to companies retaining and maintaining market share for their products."

The following is a list of the companies highlighted in this report. All research and ratings reports are available for purchase for $195 each. The Diversified Chemicals Sector Report is available for $10,000. The sector report including IVA reports, as well as access to senior analysts is $15,000. For additional reports and purchasing information, please visit csrwire.com/reports/independent.




Companies Mentioned in Report "“ Research and Ratings Reports Available
Chemical CompaniesElectronicsPersonal CareHealthcareMulti-Line RetailHousehold Durables
DuPontAppleProcter & GambleMedtronic Wal-Mart Stores, Inc Philips Electronics KON
PotashSony L'OrealBaxter International IncTarget Corp Matsushita Electric Industrial Company
AgriumIntelReckitt Benckiser PLCBoston Scientific CorpEBaySony Corp
SyngentaColgate-Palmolive CompanyStryker Corp Wal-Mart e MEX SA De CV
Nintendo Company Limited
DowKimberly-Clark CorpZimmer Holdings Inc Sears Holdings Corp
Sharp Corp.
Henkel AG Becton, Dickinson & Company Costco Wholesale Corp. Fortune Brands Inc
Avon Products IncLuxottica Marks & Spencer Group PLC Garmin Limited
Beiersdorf AG
Synthes IncKohls Corp. LG Electronics Inc
Kao Corp. Saint Jude Medical Inc Metro AG
Newell Rubbermaid Inc
Whirlpool Corp.
Harman International Industries Inc
Casio Computer Company Limited
Black & Decker Corp.

On the upside, growing consumer and market interest in "safer chemicals" is spurring the development of new markets for higher value added and differentiated products. Companies such as Herman Miller, Steelcase, and Marks and Spencer are differentiating themselves in the marketplace with safer products. Chemical companies like DuPont are also entering the green chemistry space, winning recognition for new products even as they face continuing liability and market exclusion risks for their older product lines.

Innovest cites new laws and regulations in California and Europe as driving market transformation. The report also comments that Wal-Mart "will fundamentally alter the marketplace this year by announcing a chemicals screening policy for all its suppliers." This and other private sector environmentally preferable purchasing programs are likely to create economies of scale that bring down the costs of safer alternative products.

Innovest’s report was commissioned by investment managers representing $22 billion in shareholder assets, who are collaborating as the Investor Environmental Health Network (IEHN) to encourage companies to adopt safer chemicals policies. Ten shareholder resolutions were filed in the 2006 proxy season and 13 have been filed for the 2007 season.

Copies of the report can be found here. For further information listen to an interview with Ms. Langsner on the "online media" page at www.iehn.org.

Innovest Strategic Value Advisors, Inc. logo

Innovest Strategic Value Advisors, Inc.

Innovest Strategic Value Advisors, Inc.

Innovest Strategic Value Advisors is an internationally recognized investment research and advisory firm specializing in analyzing companies’ performance on environmental, social, and strategic governance issues, with a particular focus on their impact on competitiveness, profitability, and share price performance. Innovest currently has offices in New York City, Toronto, San Francisco, London, Paris, Sydney, and Tokyo.

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