Organization: Team Inc

Year: 2010

Description: WHEREAS: Sustainable business includes “encouraging long lasting social well being in communities where [companies] operate, interacting with different stakeholders (e.g. clients, suppliers, employees, government, local communities, and non-governmental organizations), and responding to their specific and evolving needs, thereby securing a long-term ‘license to operate,’ superior customer and employee loyalty, and ultimately superior financial returns.” (Dow Jones Sustainability Group)
 
We believe reporting on environmental, social and governance (ESG) business practices makes a company more responsive to the global business environment, one with finite natural resources, shifting legislation, and changing public expectations of corporate behavior. Reporting also helps companies better integrate and gain strategic value from existing corporate social responsibility efforts, identify gaps and opportunities, develop company-wide communications, publicize innovative practices, and receive feedback.
 
The Carbon Disclosure Project (CDP), representing 475 institutional investors globally with $55 trillion in assets, has for years requested greater disclosure from companies on their climate change management programs. The 2009 response rate to the CDP from the S&P 500 was 66%.
 
Furthermore, according to a 2008 KPMG report on sustainability reporting, of the 250 Global Fortune companies, 79% produce reports compared to 52% in 2005. Of the 100 top U.S. companies by revenue, 73% produce reports compared to 32% in 2005. Increasingly, small and medium cap companies are following this trend, identifying ESG factors relevant to their business and addressing them strategically through sustainability programs and reports.
 
In contrast, Team, Inc. does not report in any detail on its sustainability efforts and does not outline greenhouse gas emissions (GHG) data or reduction plans. Climate change disclosure is particularly crucial as it is one of the most financially significant environmental issues currently facing investors.
 
Environmental impact, occupational safety and health, and community relations are areas that can pose significant regulatory, legal, reputational and financial risks to business. Increasingly, businesses are encouraging their suppliers and contractors to be more transparent. We believe that Team, Inc. has a positive story to tell and benefits from understanding the risks and opportunities of various sustainability issues. 
 
RESOLVED  Shareholders request that the Board of Directors issue a sustainability report describing the company’s ESG performance and goals, along with specific information on greenhouse gas emissions and management plans for their reduction. The report may be web based will be prepared at reasonable cost, omitting proprietary information to be available to investors, by January 30, 2011. 
 
Supporting Statement: We encourage Team, Inc.  to use the Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines (G3) to prepare the report and to use the Carbon Disclosure Project (CDP) as a means to specifically report on its GHG reduction efforts. The GRI (www.globalreporting.org) is an international organization developed with representatives from the business, environmental, human rights and labor communities. The G3 provide guidance on report content, addressing, among other issues, direct economic impacts, environmental performance, international labor standards and practices, human rights policies and product responsibility. The Guidelines provide a flexible reporting system that allows companies to report incrementally over time.