Resolves of the Executive Council

Resolved, That the Executive Council, meeting in Dearborn, Michigan from October 26 to 28, 2007, grants approval to file the following shareholder resolution with Colgate Palmolive, FedEx, and International Paper:

Take Steps Toward Carbon Neutrality

Draft (written for Colgate Palmolive, will be modified for FedEx and International Paper)

Whereas:

Colgate Palmolive is one of the leading consumer products companies in the world, with more than $12 billion in sales and operations in more than 200 companies. As an industry leader, Colgate Palmolive has particular ethical responsibilities with regard to issues like greenhouse-gas emissions and global warming.

Global warming is the most significant environmental problem facing the planet. Greenhouse gas emissions are continuing to increase, and if not reduced dramatically will lead to extraordinary climate change. In particular, increasing levels of carbon dioxide in the atmosphere are hastening the pace of global warming.

The Kyoto reduction targets may be inadequate to avert the most serious impacts of global warming. UK prime minister Gordon Brown says the EU should aim to reduce its carbon dioxide (CO2) emissions by 30% below 1990 levels by 2020 and by at least 60% by 2050.

Since Kyoto was adopted, the urgent need for action to prevent the most damaging effects of climate change has become increasingly clear. Many companies are taking steps in the right direction by reducing greenhouse gas emissions—including carbon dioxide—but not quickly enough. Consumers and governments are increasingly demanding that companies make progress toward reducing greenhouse gas emissions.

The 2006 Stern Review on the Economics of Climate Change, lead by the former chief economist at the World Bank, “… estimates that if we don’t act, the overall (worldwide) costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever.” In contrast, the costs of action would be about 1% of global GDP each year.

According to its most recent sustainability report, Colgate Palmolive improved energy efficiency by nine percent from 1999 to 2003, showing that it can set and meet goals that improve the environmental performance of its products.

Colgate Palmolive has yet to develop a comprehensive strategy to ensure that technology and practices will be applied to significantly reduce total GHG emissions from operations and products by 2010, 2020, and 2030. Indeed, Colgate Palmolive has stated in its most recent sustainability report that (p. 29) “Colgate has not taken a formal position on the issue of climate change or the associated points of view expressed by the scientific community, governments and environmental activists. Colgate believes that its role in this issue is to operate its factories as efficiently as possible in a manner that will result in benefits to the environment and to the business.” Such a position is likely to be seen as inadequate by the company’s stakeholders.

Many companies have committed to becoming carbon neutral, including Yahoo!, Nike, and Interface.

Resolved: shareholders request that the Board of Directors publicly adopt a goal of achieving carbon neutrality through reductions in emissions, emissions trading, and offsets and annually report to shareholders on its progress toward achieving carbon neutrality.