ISU investments in GCC companies may be scrutinized

Alison Storm and Dan A. Farmer
November 29, 1999

Iowa State has invested money in companies that are members of a coalition accused of suppressing research into global warming.

The Global Climate Coalition (GCC), a lobbying group representing more than 230,000 companies, is accused by environmental groups of obstructing global warming research in order to block limitations on burning fossil fuels.

More than 40 companies, including Exxon and General Motors, are board members of the GCC.

Upon review of the most recently updated ISU investment portfolio from June 30, the university holds stock in four companies that are listed as board members of the GCC: Ford Motor Company, Norfolk Southern Corp., Cinergy and TECO Energy.

Similar investments at other colleges across the country have been denounced by students, in some cases prompting colleges to divest from the GCC member companies.

Brandon McGillis, director of campaigns for Ozone Action, a nonprofit, Washington D.C.-based environmental group that is coordinating the divestment movement, said the GCC denies the existence of global warming and should not be supported by colleges and universities.

“These front groups like the GCC are spreading misinformation, and they are really countering what we, as a university, should be doing,” McGillis said. “Some of these professors are doing some of the ground-breaking research on global warming. The GCC is running counter to what they are doing.”

Frank Maisano, spokesman for the GCC, said the claims made against the organization are false.

“Somebody obviously hasn’t taken the time to look into what we are about and what we are for,” he said. “Once these institutions find out who we are and what we are about, this becomes less of a strident issue.”

Maisano said the goal of GCC is to find solutions that are not only good for the environment, but good for the economy.

“It’s a coalition that gives businesses a voice for global warming issues,” he said. “Our member companies do lobbying; we are a sounding board for business on climate issues.”

McGillis said many of the claims made by GCC are directly in conflict with global warming research being done on college campuses, such as that of ISU’s Gene Takle.

Takle, professor of atmospheric science and agricultural meteorology, said global warming is real and becoming more evident. He said out of the thousands of scientists researching global warming, only a few hold the view that it doesn’t exist.

“I have seen some of the spokespeople for these groups [such as GCC], and their arguments are really very flimsy,” Takle said. “They don’t reflect the mainstream consensus of science opinion.”

Some students from other universities agree with Takle and McGillis and have challenged their institution’s investments in GCC member companies.

Student government associations at the University of Michigan and Georgetown passed resolutions on Nov. 16, and UCLA the week before that, to support university divestment from companies holding GCC membership. The Washington Board of Regents decided to support students at the University of Washington who wanted the school to divest from its investments with GM, Ford and Chevron.

“[The Board of Regents] decided global warming is a big problem, and misinformation is not something they should be supporting,” said Ingrid Chapman, sophomore in environmental politics at the University of Washington.

Currently, the Board of Regents of Washington is drafting letters to send to the companies in which the universities invest, asking them to remove themselves from GCC, Chapman said.

McGillis said he thinks the university movement is vital to effect change in the policies of companies involved with GCC.

“Global warming is happening, and it makes smart business sense to realize the problem now,” McGillis said. “We feel when these companies start to learn how much resistance there is to the GCC, they will start doing the right thing.”

Although the controversy has not hit the ISU campus yet, students at Grinnell College have been successful in rallying support from classmates and faculty.

Matt Ewing, a sophomore at Grinnell College, is heading up a campaign that recently got the approval of more than 25 faculty members. He calls the GCC “a front group created whose purpose is to try to make sure nothing is done against global warming in the government.”

“The GCC is spending millions of dollars in misinformation campaigns to make sure nothing is done about this serious problem,” Ewing said. “I think it is just amazing how powerful this group is and how much it warps the public perception of the facts.”

Takle said he agrees with student requests that universities divest from investments in these companies that support GCC.

“It’s an appropriate action for students to take to draw attention to such matters,” Takle said. “I think the university ought to evaluate this. It ought to be a point for discussion.”

McGillis said these university protests are making a difference.

“We were completely floored by some of the reactions from companies,” McGillis said. “A lot of them are starting to reevaluate their position on the GCC. These students are definitely having an impact.”

Katie Theisen, president of ISU’s Student Environmental Council, said ISU needs to follow the lead of these other universities.

“It’s important to let these corporations know that they are being held responsible for their actions against global warming research,” said Theisen, junior in environmental science. “The SEC is currently looking into the issue, and we will make a group decision about beginning a campaign for divestment at our first meeting in mid-January.”

Garrett Toay, vice president of the Government of the Student Body, said he would stand behind any issue ISU students deem important.

“I do agree that global warming is an issue because of the research that has been done,” Toay said. “If students are interested in investigating this and feel it is worthwhile, then GSB would be more than willing to help them out.”

However, even if the controversy hits ISU, Vice President for Business and Finance Warren Madden said ISU has no control over the stocks in which the university invests.

“Institutionally, we are not free to make changes in these investments,” Madden said. “They could make changes from an investment point of view, but that’s based on an investment analysis.”

Madden said any changes must be approved by the Board of Regents, State of Iowa and also be within legislative guidelines.

Global Climate Coalition companies in which Iowa State holds stock: