NEW YORK, NY - In a major development of international shareholder activism the Local Authority Pension Fund Forum, an alliance of 27 public sector pension funds with £40 billion in combined assets, announced its support today for shareholder proposals at 13 US company annual meetings to significantly improve company reporting on carbon emissions.

Following an 18 month engagement campaign in the UK, 54% of FTSE100 companies contacted by LAPFF have improved their reporting on greenhouse issues in line with government guidance, or have committed to doing so. Now the LAPF Forum is extending its campaign to the USA and supporting shareholder proposals at 13 US company annual meetings during the 2003 proxy season.

At its meeting on March 21st the LAPF Forum agreed to recommend support for the various resolutions being proposed by the US CERES coalition relating to reportingon greenhouse gas emissions. It is making this position public to coincide with the annual conference of the CERES coalition in New York City today. CERES is a coalition of US institutional investors and environmental and advocacy groups, supported by investors with $300 billion in investments.

The companies at which the shareholder proposals are lodged are as follows:

Citigroup April 15
Weyerhauser April 15
PG&E April 16
AEP April 23
GE April 2
ConocoPhillips May 6
Gillette May 15
TXU May 16
ChevronTexaco May22
ExxonMobil May 28
SouthernCo May 28
GM June 3
Ford June 16

Councillor Bob Sowman, LAPFF chairman and chairman of the West Yorkshire Pension Fund, said "We support the CERES coalition's role in moving the agenda of shareholder concern forward on global carbon emission reporting. It is through company dialogue and engagement that we believe company reporting on this vital issue can be developed and thus shareholder returns over the long term can be protected."

"We have been encouraging UK companies to move in the right direction so supporting the concerns of US institutional shareholders and others, through the CERES initiative is a natural next step. Reporting on greenhouse gas emissions reassures shareholders that companies are taking this important issue seriously."

Among the UK companies that have improved their reporting regimes following the LAPF Forum's UK engagement campaign are: BHP Billiton, BSkyB, Boots, Diageo, Dixons, EMI, GlaxoSmithkline, Granada, HSBC, ICI, Lloyds TSB, Marks & Spencer, Prudential and Safeway.

However, while the majority show some improvement, there is still some way to go before all companies disclose their carbon emissions fully in line with government reporting guidelines. The Forum has found 38 FTSE100 companies where reporting progress can be improved. Of these, 14 use some of the government guidance but have no commitment to extend usage, 21 have improved general environmental reporting but do not use government guidelines on greenhouse gas emissions and three acknowledge climate change as an issue but do not report.

Notes to editors:

1. The LAPF Forum comprises 27 pension funds with over £40 billion in combined assets, and is advised by PIRC Ltd, the specialist corporate governance and socially responsible investment consultancy. Forum members hold on average 5% of their assets in US companies.

2. LAPFF surveyed the FTSE100 in Autumn 2001 to ascertain their compliance with reporting guidance set out by the Department for Environment, Food & Rural Affairs (DEFRA). This guidance emphasises inter alia identification of the type and source of greenhouse gas (GHG) emissions, quantification of emissions, target setting for reductions and reporting against past targets. LAPFF, in conjunction with the Environment Agency Pension Fund, initially contacted 85 companies that fell short of reporting in accordance with all criteria.

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