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Resolution: PVC Phaseout Report on
Products & Packaging
2007 Shareholder
Resolution approved by the Advisory Committee on Corporate
Social Responsibility (ACCSR)
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Resolution:
PVC Phaseout Report on Products & Packaging
RESOLVED: The shareholders of XXX urge
the Board of Directors to issue a report on PFOA and PVC in
XXX products by the XXXX annual meeting, at reasonable cost
and excluding confidential information, discussing the
feasibility of an expeditious phaseout of the use of PFOA
and PVC in the production of all XXX products, including
materials that may degrade to PFOA in use or in the
environment, and the deployment of safer substitutes.
Supporting Statement:
We believe that the increasing attention being paid by policy makers,
investors, and consumers to the presence of potentially harmful
chemicals in products necessitates adopting safer alternatives as they
become available.
Many XXX products contain polyvinyl chloride (PVC) or may be coated with
materials containing or known to break down to perfluorooctanoic acid (PFOA).
PVC Problems and Regulatory Issues: Additives mixed with PVC resins such
as stabilizers, plasticizers, and fillers can leach out of, or
volatilize from, a PVC product during its useful life. Phthalates
(plasticizers) may pose hazards which contribute to the development of
respiratory problems in children. When produced or burned PVC plastic
forms dioxins, a highly toxic group of chemicals that build up in the
food chain. The EPA classified the most potent of the dioxins as a human
carcinogen, estimating a 1-in-1,000 risk to Americans of cancer due to
exposure.
The use of PVC faces increasing governmental restrictions. Many cities,
including New York, Boston, Seattle, San Francisco, and Buffalo have
enacted policies to avoid the purchase of materials such as PVC that
lead to persistent toxic pollution. Safer, cost-effective alternatives
to PVC are available. Indeed, while some Mohawk products utilize PVC,
others do not, such as our company’s environmentally praised
polyethylene terephthalate (PET) carpet products.
PFOA Problems & Regulatory Issues: PFOA faces increasing government
scrutiny. In June 2006, the majority of EPA’s Science Advisory Board
identified PFOA as a likely carcinogen. Canadian, Australian, and
European regulators are contemplating restrictions due to PFOA’s
potential role in birth defects and liver, testicular, and pancreatic
cancer and other concerns.
The 3M Company, a former manufacturer of PFOA, tested children across
the United States. The test data submitted to EPA revealed PFOA in the
blood of 96% of 598 children studied. The company subsequently phased
out PFOA production.
Retailers including Conagra, McDonald’s, H&M, and Wal-Mart have
announced their intent to study or use alternatives to PFOA-based
products or packaging.
A class action lawsuit seeking $5 billion in damages against PFOA maker
DuPont alleges failure to disclose to consumers health risks, including
alleged emissions of PFOA, from Teflon products.
Even the lack of PFOA in an end product is not dispositive; some
materials produced utilizing PFOA and related compounds have been
evidenced to decompose to PFOA in the environment, or in the bodies of
exposed persons.
To defend share value against the reputational, regulatory, and
liability risks associated with PVC and PFOA, proponents urge a yes vote
on this resolution.
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