Isra-Mart srl : Buffett thumbs nose at greenhouse gas proposal

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Isra-Mart srl news:

Warren Buffett's Berkshire Hathaway Group has voted against a proposal to impose greenhouse gas emissions caps on its utility companies.

The proposal, contained in the firm's proxy statement, was made at the company's annual general meeting last weekend. It cited EPA regulations, suggesting that the company establish goals to reduce greenhouse gas and "other air emissions" at its utility subsidiaries.

It also called for the group to publish a report to shareholders by 30 September detailing how it would achieve those goals, and called for the creation of potential plans to retrofit or retire existing coal-burning plants among Berkshire subsidiaries.

"Most independent economists and scientists conclude that the cost of reducing greenhouse gas emissions now is far lower than the costs of mitigating greenhouse gas-caused damage later," said the text accompanying the proposal.

It also pointed out that MidAmerican Energy Holdings, the utility group owned by Berkshire Hathaway, generated approximately 73 per cent of its subsidiaries' electricity by burning coal.

"In this regard, we believe that long-term Berkshire shareholders are best served by present action, and will be harmed by procrastination in regard to greenhouse gas emissions and impending regulation," the statement said.

In spite of vehement support for the proposal from some shareholders at the meeting, Buffet and the board of directors vetoed it. The board carries 38 per cent of the vote, meaning that it was overwhelming rejected by the shareholders overall.

Buffett, who also owns rail subsidiaries extensively powered by coal plants, said that state regulators might not agree with changing electricity sources. He also said that greenhouse gases do not present a material risk for the group's insurance operations.

Buffett has emerged as a high-profile investor in clean technologies, most notably taking a stake in Chinese electric car firm BYD.

However, the latest developments are likely to put something of a dent in the investor's green credentials, particularly given that growing numbers of green investment firms and utilities are signing up to voluntary emission reduction targets.