Article from Rachel.org

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NEW INNOVEST REPORT ANALYZES CHEMICAL RISK ACROSS SECTORS

 

Value at Risk from Toxic Chemicals in Company Products

 

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. "

 

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.

 

Copyright 2007 Innovest Strategic Value Advisors

 

 

Regards

Caroline Hayes http://www.alwaysnaturallygreat.com

Certified Organic Skin, Hair, Cosmetic & Personal Care Products

 

" If we want to move toward a low polluting sustainable society we need to get

consumers to think about their purchases " David Suzuki