CU supports a Home Depot stockholder resolution on the environment

Cornell has agreed with a student request to support a Home Depot stockholder resolution aimed at protecting the environment.

The stockholder resolution asks the national hardware and home supply company to submit a report on its purchase and use of old-growth wood, found in the world's native forests that have never been logged. It was brought to the attention of university administrators and trustees by Students for Socially Responsible Investing (SSRI) and the Cornell Greens.

Cornell owns about $18 million worth of Home Depot stock, according to James Clarke, chief investment officer. The four outside investment managers who hold that stock for Cornell have been instructed by letter to vote in favor of the resolution at the company's May 26 annual meeting, Clarke said.

Robert Paul, trustee and chair of the board's Investment Committee, said he was impressed with the students' research. "I was very proud at the way the students handled themselves in this process," Paul said. "They approached the issue diligently and completely. They handled themselves professionally. What they were requesting was reasonable and responsible, and I look forward to working with them in the future on such important issues."

Frederick A. Rogers, Cornell's senior vice president and chief financial officer, said the students did their homework and followed a new procedure suggested by President Hunter Rawlings for bringing ethical and environmental concerns about corporate investments to the administration's attention.

In response to a query from the Student Assembly, Rawlings had suggested that the students form a Proxy Review Committee to research investment issues of concern. The committee would present the issues and recommendations to Rogers, who would review them. Rogers then could arrange for up to two meetings a year at which the committee could present its recommendations to the leadership of the university Investment Committee.

"I am pleased that the students were able to utilize the new procedure established by President Rawlings and bring an important issue to such a successful conclusion so quickly," Rogers said. "I look forward to working with the full student Proxy Review Committee next year in a similarly constructive dialogue."

Members of SSRI who met with Rogers and by teleconference presented their recommendation to Paul were acting as an ad hoc committee before the formation of the Proxy Review Committee. They were pleased with the outcome of the discussion on the Home Depot resolution.

"I was happily surprised at the ease and willingness with which the administration chose to work with us on the resolution," said Jonah Zern, a senior and member of SSRI. "I am particularly thankful for the time, patience and enthusiasm of Vice President Rogers, who spent many hours working through and presenting our proposal to the committee. I am extremely happy with the decision by Cornell, which has clearly taken a lead this year in demonstrating to other universities the significance of becoming responsible investors. I know the students of Students for Socially Responsible Investment, and the future committee formed by the Student Assembly to review stockholder decisions, will continue their successful dialogue and solutions in working with Vice President Rogers."

The students said Home Depot purchases wood from native forests in British Columbia, northern California, Indonesia, Brazil, Thailand and the Philippines for use in home supplies, such as rake handles, dowels and plywood.

"As an investor, Cornell is in effect supporting Home Depot's old-growth practice, and this vote is a step in the direction of a more sustainable future," said Sarah Smith, a freshman and member of the Cornell Greens.