*[Enwl-eng] Firms Begin to Grapple with Issues of Climate Change,In their SEC Filings
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Mar 13, 2013, 5:29:37 PM3/13/13
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*Wall Street begins to grapple with climate change*
By Jacqueline Baylon, Digital First Mediamercurynews.com
Posted: 03/05/2013 04:04:37 PM PST
Illustration Omitted:
Trader Edward Baumann, right, works on the floor of the New York
Stock Exchange Wednesday, June 20, 2012. Stocks edged lower early
Wednesday after investors saw signs that economies could be slowing down
in both the West and China. (AP Photo/Richard Drew) (Richard Drew)
Wall Street is starting to think about climate change, at the urging of
the Obama administration.
In recent annual reports filed with the Securities and Exchange
Commission, a number of major publicly traded companies --- including
Wal-Mart, PepsiCo and UPS --- have grappled with how changing weather
patterns could affect their business.
That has come after the SEC advised companies in 2010 to take climate
change into consideration when looking at business risks.
Most companies have little or nothing to say on climate change, while
key players in the energy industry tended to worry more about the
effects of regulations aimed at reducing greenhouse gases.
Still, some have gone further and looked at how climate change could
affect everything from crop prices to the frequency of damaging storms.
Below, a look at what seven top Fortune 500 companies (and one much
smaller firm, Zumiez) said about climate change in their SEC filings.
ExxonMobil
(AP)
ExxonMobil, the biggest firm in the Fortune 500, is typical of oil
companies. In a February filing, the Texas-based giant only looked at
how new regulations might affect gas prices or drilling permits:
"These requirements could make our products more expensive, lengthen
project implementation times, and reduce demand for hydrocarbons, as
well as shift hydrocarbon demand toward relatively lower-carbon sources
such as natural gas. Current and pending greenhouse gas regulations also
may increase our compliance costs, such as for monitoring or
sequestering emissions."
ConocoPhillips
(AP)
ConocoPhillips, the third largest oil company on the Fortune 500 after
ExxonMobil and Chevron, had a similar take as they did on new
regulations. But in a December filing, the Texas-based firm also looked
at the damage more severe weather could do:
"Although our business operations are designed and operated to
accommodate expected climatic conditions, to the extent there are
significant changes in the Earth's climate, such as more severe or
frequent weather conditions in the markets we serve or the areas where
our assets reside, we could incur increased expenses, our operations
could be materially impacted, and demand for our products could fall."
UPS
(AP)
Package delivery company UPS, which uses a lot of oil and gas driving
and flying around the world each day, went in a different direction in a
December filing, worrying that public opinion could about climate change
could also hurt its business:
"Even without such legislation or regulation, increased awareness and
any adverse publicity in the global marketplace about the (greenhouse
gases) emitted by companies in the airline and transportation industries
could harm our reputation and reduce customer demand for our services,
especially our air services."
Wal-Mart
(AP Photo/Seth Perlman)
With more than 10,000 retail stores in 27 countries, Arkansas-based
discount chain Wal-Mart Stores Inc. noted in a January 2012 filing that
it was at risk from severe weather that might destroy stores or prevent
employees and customers from getting to them:
"The occurrence of one or more natural disasters, such as hurricanes,
cyclones, typhoons, tropical storms, floods, earthquakes, tsunamis,
weather conditions such as major or extended winter storms, droughts and
tornados, whether as a result of climate change or otherwise, severe
changes in climate and geo-political events, such as civil unrest or
terrorist attacks in a country in which we operate or in which our
suppliers are located could adversely affect our operations and
financial performance."
Pfizer
(AP)
Not everyone was as concerned as Wal-Mart, however. In a February 2012
filing, New York-based pharmaceutical company Pfizer said it had looked
at the possibility of severe weather and concluded its locations were safe:
"While there can be no assurance that physical risks to our facilities
and supply chain due to climate change will not occur in the future, we
have reviewed the potential for these risks and have concluded that,
because of our facility locations and our existing distribution
networks, we do not believe these risks are material in the near term."
Zumiez
Illustration Omitted:
Skateboarders at the Zumiez-sponsored Best Foot Forward
competition in 2008. (AP Photo/Erin Hooley/Standard-Examiner)
Some companies had unique concerns. Washington-based Zumiez Inc., a
clothing chain that specializes in skateboarding, snowboarding and
surfing gear, noted in a January 2012 filing that "unpredictable weather
patterns" could affect demand for its products:
"For example, extended periods of unseasonably warm temperatures
(including any weather patterns associated with global warming and
cooling) during the winter season or cool weather during the summer
season could render a portion of our inventory incompatible with those
unseasonable conditions. These prolonged unseasonable weather
conditions, particularly in regions of the United States where we have a
concentration of stores, could have a material adverse effect on our
business and results of operations."
PepsiCo
(AP)
The most thorough account of potential risks came from Pepsico Inc.,
which manages a portfolio that includes Pepsi-Cola, Frito-Lay and Quaker
Oats. In a December filing, the New York-based beverage company said
climate change could cause price hikes for its ingredients, higher
electricity rates, water shortages and damage from severe weather:
"In the event that such climate change has a negative effect on
agricultural productivity, we may be subject to decreased availability
or less favorable pricing for certain commodities that are necessary for
our products, such as sugar cane, corn, wheat, rice, oats, potatoes and
various fruits. We may also be subjected to decreased availability or
less favorable pricing for water as a result of such change, which could
impact our manufacturing and distribution operations. In addition,
natural disasters and extreme weather conditions may disrupt the
productivity of our facilities or the operation of our supply chain."
Hewlett-Packard
(AP)
Still, not everyone saw only risk in climate change. In an October
filing, California-based tech firm Hewlett-Packard said that while
regulations on greenhouse gases could affect its industry, they also
might be a business opportunity:
"We believe that technology will be fundamental to finding solutions to
achieve compliance with and manage those requirements, and we are
collaborating with industry, business groups and governments to find and
promote ways that HP technology can be used to address climate change
and to facilitate compliance with these related laws, regulations and
treaties."
http://www.sbsun.com/news/ci_22724257/wall-street-begins-grapple-climate-change
*** NOTICE: In accordance with Title 17 U.S.C. Section 107, this
material is distributed, without profit, for research and educational
purposes only. ***
From: "Yahoo Newsgroups" <vasi...@ramapo.edu>
Sent: Tuesday, March 12, 2013 1:13 PM
Subject: News: Firms Begin to Grapple with Issues of Climate Change, In
their SEC Filings
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By Jacqueline Baylon, Digital First Mediamercurynews.com
Posted: 03/05/2013 04:04:37 PM PST
Illustration Omitted:
Trader Edward Baumann, right, works on the floor of the New York
Stock Exchange Wednesday, June 20, 2012. Stocks edged lower early
Wednesday after investors saw signs that economies could be slowing down
in both the West and China. (AP Photo/Richard Drew) (Richard Drew)
Wall Street is starting to think about climate change, at the urging of
the Obama administration.
In recent annual reports filed with the Securities and Exchange
Commission, a number of major publicly traded companies --- including
Wal-Mart, PepsiCo and UPS --- have grappled with how changing weather
patterns could affect their business.
That has come after the SEC advised companies in 2010 to take climate
change into consideration when looking at business risks.
Most companies have little or nothing to say on climate change, while
key players in the energy industry tended to worry more about the
effects of regulations aimed at reducing greenhouse gases.
Still, some have gone further and looked at how climate change could
affect everything from crop prices to the frequency of damaging storms.
Below, a look at what seven top Fortune 500 companies (and one much
smaller firm, Zumiez) said about climate change in their SEC filings.
ExxonMobil
(AP)
ExxonMobil, the biggest firm in the Fortune 500, is typical of oil
companies. In a February filing, the Texas-based giant only looked at
how new regulations might affect gas prices or drilling permits:
"These requirements could make our products more expensive, lengthen
project implementation times, and reduce demand for hydrocarbons, as
well as shift hydrocarbon demand toward relatively lower-carbon sources
such as natural gas. Current and pending greenhouse gas regulations also
may increase our compliance costs, such as for monitoring or
sequestering emissions."
ConocoPhillips
(AP)
ConocoPhillips, the third largest oil company on the Fortune 500 after
ExxonMobil and Chevron, had a similar take as they did on new
regulations. But in a December filing, the Texas-based firm also looked
at the damage more severe weather could do:
"Although our business operations are designed and operated to
accommodate expected climatic conditions, to the extent there are
significant changes in the Earth's climate, such as more severe or
frequent weather conditions in the markets we serve or the areas where
our assets reside, we could incur increased expenses, our operations
could be materially impacted, and demand for our products could fall."
UPS
(AP)
Package delivery company UPS, which uses a lot of oil and gas driving
and flying around the world each day, went in a different direction in a
December filing, worrying that public opinion could about climate change
could also hurt its business:
"Even without such legislation or regulation, increased awareness and
any adverse publicity in the global marketplace about the (greenhouse
gases) emitted by companies in the airline and transportation industries
could harm our reputation and reduce customer demand for our services,
especially our air services."
Wal-Mart
(AP Photo/Seth Perlman)
With more than 10,000 retail stores in 27 countries, Arkansas-based
discount chain Wal-Mart Stores Inc. noted in a January 2012 filing that
it was at risk from severe weather that might destroy stores or prevent
employees and customers from getting to them:
"The occurrence of one or more natural disasters, such as hurricanes,
cyclones, typhoons, tropical storms, floods, earthquakes, tsunamis,
weather conditions such as major or extended winter storms, droughts and
tornados, whether as a result of climate change or otherwise, severe
changes in climate and geo-political events, such as civil unrest or
terrorist attacks in a country in which we operate or in which our
suppliers are located could adversely affect our operations and
financial performance."
Pfizer
(AP)
Not everyone was as concerned as Wal-Mart, however. In a February 2012
filing, New York-based pharmaceutical company Pfizer said it had looked
at the possibility of severe weather and concluded its locations were safe:
"While there can be no assurance that physical risks to our facilities
and supply chain due to climate change will not occur in the future, we
have reviewed the potential for these risks and have concluded that,
because of our facility locations and our existing distribution
networks, we do not believe these risks are material in the near term."
Zumiez
Illustration Omitted:
Skateboarders at the Zumiez-sponsored Best Foot Forward
competition in 2008. (AP Photo/Erin Hooley/Standard-Examiner)
Some companies had unique concerns. Washington-based Zumiez Inc., a
clothing chain that specializes in skateboarding, snowboarding and
surfing gear, noted in a January 2012 filing that "unpredictable weather
patterns" could affect demand for its products:
"For example, extended periods of unseasonably warm temperatures
(including any weather patterns associated with global warming and
cooling) during the winter season or cool weather during the summer
season could render a portion of our inventory incompatible with those
unseasonable conditions. These prolonged unseasonable weather
conditions, particularly in regions of the United States where we have a
concentration of stores, could have a material adverse effect on our
business and results of operations."
PepsiCo
(AP)
The most thorough account of potential risks came from Pepsico Inc.,
which manages a portfolio that includes Pepsi-Cola, Frito-Lay and Quaker
Oats. In a December filing, the New York-based beverage company said
climate change could cause price hikes for its ingredients, higher
electricity rates, water shortages and damage from severe weather:
"In the event that such climate change has a negative effect on
agricultural productivity, we may be subject to decreased availability
or less favorable pricing for certain commodities that are necessary for
our products, such as sugar cane, corn, wheat, rice, oats, potatoes and
various fruits. We may also be subjected to decreased availability or
less favorable pricing for water as a result of such change, which could
impact our manufacturing and distribution operations. In addition,
natural disasters and extreme weather conditions may disrupt the
productivity of our facilities or the operation of our supply chain."
Hewlett-Packard
(AP)
Still, not everyone saw only risk in climate change. In an October
filing, California-based tech firm Hewlett-Packard said that while
regulations on greenhouse gases could affect its industry, they also
might be a business opportunity:
"We believe that technology will be fundamental to finding solutions to
achieve compliance with and manage those requirements, and we are
collaborating with industry, business groups and governments to find and
promote ways that HP technology can be used to address climate change
and to facilitate compliance with these related laws, regulations and
treaties."
http://www.sbsun.com/news/ci_22724257/wall-street-begins-grapple-climate-change
*** NOTICE: In accordance with Title 17 U.S.C. Section 107, this
material is distributed, without profit, for research and educational
purposes only. ***
From: "Yahoo Newsgroups" <vasi...@ramapo.edu>
Sent: Tuesday, March 12, 2013 1:13 PM
Subject: News: Firms Begin to Grapple with Issues of Climate Change, In
their SEC Filings
------------- * ENWL * ------------
Ecological North West Line * St. Petersburg, Russia
Independent Environmental Net Service: http://www.bellona.ru/enwl/
Russian: ENWL(discussions), ENWL-inf(FSU information), ENWL-misc(any topics)
English: ENWL-eng (world information)
en...@lew.spb.org, enwl...@lew.spb.org, en...@lew.spb.org, en...@lew.spb.org
Subscription, Moderator: vf...@lew.spb.org or en...@enw.net.ru
Archive: http://enwl.bellona.ru/pipermail/
and http://groups.google.com/group/enwl/
SEE ALSO: http://www.bellona.org (English)and http://www.bellona.ru
(Russian)
RSS: http://groups.google.ru/group/enwl/feeds?hl=ru
(C) Please refer to exclusive articles of ENWL
-------------------------------------
ONLY if your address is subscribed:
Enwl-eng mailing list
Enwl...@enwl.bellona.ru
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