View resolution

City Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, today commended TXU Corporation for agreeing to strengthen its environmental policies and announced the withdrawal of the Funds’ resolution which had been filed on this issue.

In late February, TXU announced that as part of a proposed merger in which it will be acquired by Kohlberg Kravis Roberts & Co. (KKR) and Texas Pacific Group (TPG), it will reduce the number of coal-fired power plants it had planned from 11 to 3, preventing 56 million tons of annual carbon emissions. TXU also announced that it will explore renewable energy sources and invest in alternative energy technologies and create an independent Sustainable Energy Advisory Board.

“The Funds are pleased that as TXU goes in a new direction, it has had the foresight to adjust its plans to strengthen its environmental policies,” Thompson said. “We commend TXU for addressing the Funds’ concerns by committing to a reduction of annual carbon dioxide emissions, and are pleased that it has made further commitments to climate stewardship. We look forward to working with KKR and TPG in fulfilling their commitment.”

“By pushing companies like TXU to reduce carbon emissions, the New York City Pension Funds are contributing to a cleaner environment,” said New York City Public Advocate and NYCERS trustee Betsy Gotbaum. “I am proud that the Pension Funds are once again leading the way in shareholder activism.”  

"The Unitarian Universalist was pleased to join with the New York City Pension Funds in filing this resolution with TXU,” said Tim Brennan, Treasurer, Unitarian Universalist Association. “Our congregations are deeply concerned about the potential devastation of climate change on people, the planet, and our invested assets. We believe this new direction by TXU is setting an example of stewardship and smart business that other companies should follow. I find it heartening to see the financial markets recognizing the importance of global warming and driving positive change."

In November, the New York City Pension Funds filed a resolution co-sponsored by the Unitarian Universalist Association calling for a report on how the company was responding to rising regulatory, competitive, and public pressure to significantly reduce carbon dioxide and other emissions from the company's proposed power plant operations and asked that a report be issued to shareholders by September 1, 2007.

As a result of the recent announcement, the Funds have withdrawn their resolution.

The New York City pension funds hold, in the aggregate, 784,734 shares of TXU common stock. The Funds are the: New York City Employees’ Retirement System, the Teachers’ Retirement System of New York  City, the New York City Police Department Pension Fund, the New York City Fire Department Pension Fund, and the New York City Board of Education Retirement System.

The trustees for the Pension Funds are:

NYCERS: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

TRS: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Peter Gorman, President and Captains’ Rep., Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

BERS: Mayoral appointees Schools Chancellor Joel I. Klein, Alan D. Aviles, Philip A. Berry, David C. Chang, Tino Hernandez, Edison O. Jackson, Richard L. Menschel and Marita Regan; Borough President appointees Luis Peguero (Bronx), Martine G. Guerrier (Brooklyn), Vivian Farmery (Manhattan), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and Milagros Rodriguez of District Council 37, Local 372.

###