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US SRI firm warns investors of huge financial risks from Dow dioxin emissions
April 24, 2003
NEW YORK (AFX-GEM) - Trillium Asset Management, a Boston-based
socially responsible investment (SRI) firm, has urged Dow Chemical
shareholders and SRI fund managers to take note of significant
financial risks posed by dioxin-related liabilities.
Trillium on Wednesday sent shareholders and SRI firms information
highlighting market risks and liabilities, citing a recent
class-action lawsuit filed against dioxin contamination from Dow's
plant in Midland, Michigan, where Dow headquarters and its flagship
manufacturing plant are located.
"Dow has not provided investors with an estimate of remedial
costs anticipated in this large area," Trilllium told investors.
About 2,000 Michigan residents filed a class action lawsuit last
month for property damages and medical monitoring resulting from
alleged dioxin contamination. The complaint cited 100 million dollars
in property damages alone.
"We want shareholders to be aware of the significant financial
liability and Dow's responsibility to clean up the mess it has made
in Michigan," Shelley Alpern, Trillium's director of social research
and advocacy, told AFX Global Ethics Monitor.
Trillium has sponsored a shareholder proposal calling on Dow to
report dioxin emissions and to develop plans to clean up
dioxin-contaminated areas and to phase out products and processes
that emit dioxin. Shareholders will vote on the proposal at Dow's
annual meeting on May 8.
"We want shareholders to send a message to Dow that there's no
level of dioxin that's acceptable," said Alpern.
According to the Environmental Protection Agency, there is no
safe level of exposure to dioxin, which can cause cancer,
reproductive illnesses, and developmental disorders.