View Sustainability Reporting Resolution

Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, has submitted a proposal requesting that seven companies issue an annual report to their shareholders within the framework of internationally accepted sustainability reporting guidelines, fully disclosing the global social, environmental and economic impacts of their business operations.

The resolution requests that companies issue a sustainability report to shareholders, at reasonable cost and omitting proprietary information, by September 1, 2006. Sustainability is broadly understood as strategic business development and performance that meets present needs without endangering future generations.

The proposal was submitted on behalf of the New York City Employees' Retirement System (NYCERS), Teachers' Retirement System of the City of New York (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund and the New York City Board of Education Retirement System (BERS).

"Full and transparent disclosure of economic, social and environmental performance and impacts will help companies to better assess risks and minimize liabilities, while building reputation and societal acceptance," Thompson stated. "The availability of this data will better equip investors in their decision making process. The link between sustainable business operations and long-term shareholder value is increasingly being recognized among mainstream financial companies."

The proposal was filed for the first time with Honeywell International, Inc. of Morristown, NJ, Kellogg Company of Battle Creek, MI, Raytheon Company of Waltham , MA , and General Dynamic Corporation of Falls Church ,  VA. It was re-submitted to Kinder Morgan of Houston, TX, Safeway, Inc. of Pleasanton , CA and Dean Foods Company of Dallas , TX .

The Pension Funds have more than 7.5 million shares valued at $339 million in the seven companies.

Kinder Morgan recently notified the Comptroller's Office that in response to the resolution it has agreed to disclose its social, environmental and economic performance by issuing annual sustainability reports. The Comptroller's Office has withdrawn the resolution.

Two companies, Honeywell International and Raytheon Co., had submitted letters informing the SEC of their intent to omit the proposal from their 2006 proxy statements, and requested that the SEC take no action against them.

The SEC has not yet made a decision on Honeywell International but has agreed to Raytheon's request. The proposal will not be included in Raytheon's proxy statement.

Besides Thompson, the Pension Funds' trustees are:

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; Edward Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

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.

BERS: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (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.