Organization: Tutor Perini Corp

Year: 2010

Description: WHEREAS:  Investors increasingly seek disclosure of companies’ social and environmental practices in the belief that they impact shareholder value.  Many investors believe companies that are good employers, environmental stewards, and corporate citizens, are more likely to generate stronger financial returns, better respond to emerging issues, and enjoy long-term business success.
 
Mainstream financial companies are continuing to recognize the links between sustainability performance and shareholder value.  For example, investment firms like Goldman Sachs and Deutsche Asset Management are increasingly incorporating corporate social and environmental practices into their investment decisions.  Furthermore, the United Nations’ Principles for Responsible Investment (UNPRI), a set of guidelines that can be adopted by institutional investors addressing environmental, social and corporate governance issues (ESG), has approximately 538 signatories representing $18 trillion assets under management as of May 2009.
 
Globally, over 2,600 companies issued reports on sustainability issues in 2007 (www.corporateregister.com).  A recent survey found that 80% of the Global Fortune 250 companies now release corporate responsibility data, which is up from 64% in 2005 (KPMG International Survey of Corporate Responsibility Reporting 2008).
 
A number of industrial companies do not currently produce sustainability reports, especially regarding key issues such as climate change, resource use, and employee safety.  The absence of this disclosure may increase the company’s risk.  For example, a KPMG report (Climate Changes Your Business, 2008) which assessed business and economic risks across sectors, identified the Construction and Materials sector as one of several medium risk sectors with regards to climate change.  In particular, Construction and Materials is exposed to a high level of regulatory risk with some physical risk as well.  KPMG notes that changes in weather and regulatory pressures will lead to new building codes that challenge existing building materials and techniques, affecting both construction and engineering services.  Fortunately, several industry peers, including URS Corporation and Granite Construction, have taken the initiative to disclose their sustainability programs.
 
RESOLVED: Shareholders request that the Board of Directors prepare a sustainability report describing corporate strategies to reduce greenhouse gas emissions and addressing other environmental and social impacts such as energy efficiency efforts and waste management. The report, prepared at reasonable cost and omitting proprietary information, should be published by October 2010.
 
Supporting Statement:  The report should include the company’s definition of sustainability and a company-wide review of company policies, practices, and metrics related to long-term social and environmental sustainability. 
 
We recommend that Tutor Perini use the Global Reporting Initiative’s Sustainability Reporting Guidelines to prepare the report.  The Global Reporting Initiative (www.globalreporting.org) is an international organization developed with representatives from the business, environmental, human rights, and labor communities.