92.5 Million Hewlett Packard Shares Voted in Support of Greater Responsibility for Environmental Impact of Junked Computers
BETHESDA, Md., April 30 /PRNewswire/ -- Calvert, the nation's largest family of socially responsible mutual funds, presented a resolution at the Hewlett Packard (NYSE: HWP - news) Annual General Meeting on Friday, April 26 asking the company to take greater responsibility for disposal of junked computers by studying ways to strengthen its computer take-back and recycling programs. Calvert is concerned that failure to address the potential hazards of electronic waste creates risks and liabilities that may ultimately affect shareholder value.
The resolution received the support of 8% or 92.5 million shares. Calvert believes the Hewlett Packard vote was the first resolution on computer recycling to be voted on by U.S. shareholders.
The recent merger proposition raises legitimate concerns about whether the integration of Hewlett Packard and Compaq will postpone or impair progress on corporate-wide solutions to electronic waste. Supporters of the environment secured enough votes to send a strong message to management to continue to lead the "the H-P way," carrying on the company's environmental leadership tradition.
"This is not just an environmental issue, it is a matter of strategic importance," said Julie Frieder, Calvert's Environment Analyst. "Computer producers already face regulations in Europe, Japan and in several states in this country." Calvert's proposal encourages H-P to voluntarily assume greater responsibility for environmental impacts of the full life cycle of computers.
Calvert has filed similar resolutions with five other computer makers held by the Calvert funds including Apple, Compaq, Dell, Gateway and IBM. "We are asking all the major original equipment manufacturers to do the same study so we will have a better understanding on what companies have done and what they are planning in the area of take-back, recycling and disassembly," added Frieder.
One computer may contain up to 700 different chemical compounds -- such as arsenic, lead, mercury, and cadmium -- many of which are hazardous. An estimated 500 million computers will become obsolete between 1997 and 2007. Only about 11% of these discarded units are currently recycled. The rest often wind up in landfills, where the hazardous substances can contaminate soil and water supplies.
According to Ted Smith, electronic waste expert and Executive Director of the Silicon Valley Toxics Coalition, "Electronic waste is the fastest growing waste stream in the world, and one of the most toxic. Yet the response to address this problem has only begun to scratch the surface. In fact, much of the e-waste generated in the U.S. is currently being shipped to Asia, where it is causing harm to human health and the environment."
"Producer responsibility creates a powerful incentive to design products that are environmentally preferable, easier to upgrade, disassemble and recycle," said Conrad MacKerron, Director of the Corporate Social Responsibility Program at As You Sow, a San Francisco-based foundation that challenges companies to improve their social and environmental policies.
"While the size of the vote might seem small, such minority votes often end up moving company policies," said MacKerron. "A 1999 vote at Home Depot of 11.8% on phasing out sales of old growth timber was sufficient to encourage that company to agree to stop purchasing wood from endangered forests and to increase its use of certified wood. A 2001 vote of 5.2% at Coca-Cola on recycling prompted the company to announce a goal for recycled content in plastic beverage bottles."
Calvert is one of the largest mutual fund complexes in the Washington D.C. area with approximately $8.3 billion in assets under management. Best known for its family of socially responsible mutual funds, Calvert offers twenty- nine 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(TM), a benchmark for measuring the performance of large, U.S.-based socially responsible companies. Calvert also has an extensive lineup of tax-free and taxable fixed income investments. For more information on Calvert, click on calvert.com .
Hewlett Packard represents 0.49% of the total assets in the Calvert Social Index Fund and 0.51% of the total assets in the Calvert Social Investment Fund Enhanced Equity Portfolio, as of April 29, 2002.
For more complete information about any Calvert mutual fund, call 800-368-2748 for a free prospectus or go to our Web site at calvert.com . Read it carefully before you invest.
Calvert mutual funds are underwritten and distributed by Calvert Distributors Inc., member NASD, a subsidiary of Calvert Group. (4/02, 3903)
SOURCE: Calvert |
