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© ECOFACT AG 2009, all rights reserved RepRisk® is a registered trademark of ECOFACT AG Page 1 of 10
According to the reputational risk radar RepRisk, the most environmentally and socially controversialcompanies in September and October 2009 were: Vedanta, Chevron, Nestle, Shell, Red Industries,Bhushan Power & Steel, ExxonMobil, Beef Products, Greater Omaha Packing Company, Lone Star BeefProcessors, and Cargill. Companies on the list have been severely criticized by the world’s media,governmental organizations and NGOs for issues including human rights abuses, severe environmentalviolations, impacts on local communities, corruption and bribery, and breaches of labor and health andsafety standards. Rankings are based on the Reputational Risk Index (RRI), as measured by RepRisk inSeptember and October of this year. The RRI is directly derived from the negative press captured byRepRisk and its calculation is strictly rule-based.RepRisk does not measure a firm's overall reputation. Instead, by capturing criticism, RepRisk computes afirm's exposure to controversy and therefore provides an indicator for reputational risk. RepRisk is used byasset owners and asset managers, commercial and investment bankers, supply chain managers, andcorporate responsibility experts.
Most Environmentally and SociallyControversial Companies inSeptember and October 2009
Zurich, November 3, 2009 / Karen Reiner
 
 
© ECOFACT AG 2009, all rights reserved RepRisk® is a registered trademark of ECOFACT AG Page 2 of 10
The Reputational Risk Index (RRI) ranges from zero (lowest) to 100 (highest) and its calculation is based onthe reach of news sources, the frequency and timing of news, as well as its content, i.e. severity andnovelty of the issues addressed. The RRI is an indicator of a company's exposure to controversial issuesand allows an initial assessment of risks that are attached to investments and business relationships. It alsoallows the exposure of an entity to be compared with that of its peers, and permits risk trends to betracked over time.
 
The following pages provide a summary of the criticism to which the most controversial companies havebeen exposed, as well as the environmental and social issues that have been associated with thesecompanies. The company’s ranking from the previous month is shown in brackets.In addition to the regular list, the September-October focus area will be on the utilities sector and its topfive most environmentally and socially controversial companies.Please refer to page 10 for more details on methodology.
 
 
© ECOFACT AG 2009, all rights reserved RepRisk® is a registered trademark of ECOFACT AG Page 3 of 10
Vedanta Resources PLC, Rank 1 [12]
Vedanta faced strong criticism and protests from locals over its subsidiary, Sterlite Industries' proposedopencast bauxite mine in Orissa, India. The company was criticized by the British government followingthe release of a report by the UK National Contact Point in relation to this project. The report accusedVedanta of violating OECD Guidelines for Multinational Enterprises by failing to respect the rights of,and properly consult, the 8,000-strong Dongria Kondh tribe, an indigenous group directly affected bythe mine. It is alleged the project would destroy their sacred mountain, involve forced relocations, bedetrimental to their traditional culture, and pollute rivers and forests. Also in India, the company facedallegations that it used intimidation tactics to suppress opposition to its proposed Vedanta University.One local organization in Bhubaneswar has opposed the project for the past three years and plans tointensify its campaign, claiming that the project will displace hundreds of people. Furthermore, asubsidiary of Sterlite Industries, Bharat Aluminium (Balco), came under fire when a 250 meter highchimney collapsed at its power plant killing 36 employees, injuring 7 more, and leaving over 100 workersmissing in the rubble. Local officials attributed the accident to poor construction work by contractors andstated Balco did not have the proper permission to build the chimney. India’s Serious Fraud InvestigationOffice has announced that it is to investigate Sesa Goa and Sesa Industries, both subsidiaries of VedantaResoures, for financial irregularities dating back to 2003.
Top three issues:1.
 
Impacts on Communities2.
 
Local Participation Issues
3.
 
Health and Safety Issues
 
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