1997 Annual Report [PDF]

30TH ANNIVERSARY REPORT 1967-1997

ENVIRONMENTAL DEFENSE FUND Environmental Defense Fund at a Glance

Incorporated: October 6, 1967

Offices: New York, NY Washington, DC Oakland, CA Boulder, CO Raleigh, NC Austin, TX Boston, MA Addresses on inside back cover

Staff: 160

Members: More than 300,000

On the Cover The magnificent osprey, like the bald eagle and other birds of prey, declined sharply due to widespread spraying of DDT. Rachel Carson alerted the public to the perils of such pesticides in her landmark 1962 book, Silent Spring. The Environmental Defense Fund’s battle against DDT led to a nationwide ban in 1972. Since then, the number of ospreys, bald eagles, brown pelicans, and peregrine falcons in the United States has increased dramatically.

100% Recycled (75% Post-Consumer) Paper Totally Chlorine Free Please share this report with others.

At the Environmental Defense Fund, SOLUTIONS teams of scientists, economists, and attorneys develop innovative and practical solutions to some of today’s most serious environmental problems. EDF’s four main goals are to:

Stabilize the Earth’s climate by reducing emissions of greenhouse gases. (p.4)

Protect human health from exposure to toxic chemicals and pollution. (p.6)

Defend and restore biodiversity, with concentration on rivers and watersheds. (p.8)

Safeguard the world’s oceans from pollution and overfishing. (p.10) FOCUSING

2 ON RESULTS

As the Environmental Defense Fund approached its 30th anniversary, we stepped back to look at the state of the environment—and at EDF itself. We wanted to evaluate the most pressing environmental threats and how we could best deal with them. Environmental problems today affect the entire Earth: its climate, oceans, land, and the lives of its inhabi- tants. With so much at stake, we knew EDF could not do everything. So we decided to concentrate on four goals, as described in this report: stabilizing climate, protecting human health, defending biodiversity, and safeguarding the oceans. In each of these areas we achieved important suc- cesses this year. For example: ■ Climate: EDF helped develop a White House plan to begin reducing greenhouse gas emissions now, and worked with British Petroleum—the first oil company to express concern about global warming—on methods to reduce its own emissions. ■ Health: EDF showed that basic information on health effects is not publicly available for two-thirds of the top-selling industrial chemicals, and called on CEO’s of major chemical companies to complete the needed tests and disclose results. ■ Biodiversity: EDF developed a project with the state of Maryland to restore 100,000 acres of wildlife habitat alongside streams that enter Chesapeake Bay, creating buffer zones to protect the bay from agricultural pollution. ■ Oceans: EDF staff were appointed as the only environmental representatives to the New England Fishery Management Council and to two National Academy of Sciences panels charged with improving the nation’s fisheries. In recognizing this year’s achievements, my thanks go to the entire staff, whose skills, resourcefulness, and good judgment distinguish EDF as a powerful force for change.

Fred Krupp Executive Director ALLIANCES FOR THE ENVIRONMENT

For 35 years, I’ve worked in business. When I heard about an environmental group that went beyond identi- fying problems to constructing practical solutions, I had to get involved. The Environmental Defense Fund has learned how to harness the power of the marketplace to protect the environment. For example, in drafting the acid rain section of the 1990 Clean Air Act, EDF deliberately let power-plant owners choose how to cut sulfur pollution in half. As a result, new ways of reducing the pollution were developed, driving down costs to less than one-tenth of what industry had predicted. Because government officials knew that the reductions would get cheaper, they were able to set more ambitious environmental goals. EDF also works directly with businesses. EDF pays its own way and accepts no contributions from the companies involved. In the early 90’s, EDF helped McDonald’s dramatically increase its use of recycled packaging, and spurred other companies to follow suit. Building on this approach, EDF and The Pew Charitable Trusts created the Alliance for Environmental Innovation to help companies integrate environmental considerations into their business decisions. Today the Alliance is working with S.C. Johnson Wax to consider environmental factors when developing new products, and with Starbucks Coffee Company to increase the use of reusable cups and design better take-out cups. I want to thank my predecessor, George Montgomery, for his hard work on behalf of EDF. And I want to thank all the members, Benefactors, Trustees, and foundations whose generosity this year has made EDF’s work possible. Total support and revenue reached $25.8 million, a record.

John H.T. Wilson Chairman of the Board CLIMATE: 4 REDUCING GREENHOUSE

GAS EMISSIONS

Emissions of carbon dioxide and other greenhouse gases—from fossil fuels, deforestation, and agriculture—are changing the Earth’s atmosphere. The consequences are expected to include record heat, drought, northward migration of tropical diseases, more intense rainstorms and snowstorms, and rising seas. Scientists overwhelm- ingly concur that the evidence for global warming is strong and the price of inaction high. EDF is working for effective international agreements, national programs, and private-sector initiatives to reduce these emissions. To educate policymakers and the public, EDF analyzed the potential impacts of global warming for several parts of the country and presented a major exhibi- tion at the Smithsonian. EDF scientists also served on international pan- For the 1990 Clean Air Act, EDF designed a new els studying population growth and way to reduce sulfur emissions, one of the main causes of its impact on climate change. As countries prepared for the acid rain. President Bush praised EDF “for bringing December 1997 climate summit in creativity to the table to end what could have been a Kyoto, Japan, all eyes were on the hopeless stalemate.” Under the plan, power plants must United States, the world’s largest cut their sulfur emissions in half, but are free to choose emitter of greenhouse gases. EDF helped develop the U.S. proposal for how. Plants that cut more than required can sell excess an international emissions-trading sys- reductions or use them later. President Clinton noted tem that could maximize reductions that the acid rain plan has put America “well ahead of in emissions while minimizing costs. We joined with other environmental the schedule we set for ourselves and well below the pro- groups in pressing the Administration jected cost in cleaning the environment.” to commit to larger and earlier reductions. We also helped persuade President Clinton to offer American companies credit for making early reductions, without waiting for an “The Environmental Defense Fund has become one of the most conceptually innovative, sophisticated, and effective conservation organizations in the United States.’’ William K. Reilly, Former Administrator, U.S. Environmental Protection Agency 5

Carbon dioxide and other invisible heat-trapping gases are building up in the Earth’s atmosphere as a result of human activities such as the burning of fossil fuels.

international agreement. This will more widely available at increasingly cutting air pollution. EDF promoted stimulate cost-reducing innovations. competitive prices. To promote such variable-toll plans in California and British Petroleum, the choices, EDF helped enact a California New York that would reduce conges- world’s third largest oil company, law that requires electric companies to tion and thereby reduce pollution. We announced that it will monitor and disclose the source of their electricity also helped win new transportation disclose its worldwide greenhouse gas to customers. In developing countries, policies in Maryland that will discour- emissions and take steps to limit EDF is working to redirect private and age urban sprawl. them. Working with EDF, the com- public investments, including World pany will first set targets for some of Bank loans, toward environmentally its operating units and then establish a sound energy projects. company-wide emissions limit, years Transportation is another ahead of any government requirement. major source of greenhouse gases. In Two-thirds of America’s the past 25 years, the number of vehi- electricity comes from fossil fuels. cles in the United States has grown six Restructuring of the electric utility times faster than the human popula- industry will bring more competition, tion. EDF is advocating greater effi- giving many people the chance to ciency and equity in transportation. A choose power from cleaner sources, new natural-gas van service was such as wind, biomass, geothermal, launched with EDF’s help in Los and solar energy. Strong customer Angeles County, increasing the mobil- demand could make these options ity of low-income commuters while HEALTH: 6 PROTECTING PEOPLE FROM TOXIC CHEMICALS

AND POLLUTION

Toxic chemicals and pollution can weaken people’s resistance to disease and also directly cause illness, including cancer, damage to the nervous system, and lead poisoning. But it is not always clear which substances pose a threat. Each year manufacturers sell billions of pounds of chemicals for which the public lacks basic data on health effects. In essence, we and our children and grandchildren are the sub- jects of a large-scale health experiment. A new EDF study, Toxic Ignor- ance, shows that even basic health tests are not publicly available for two- thirds of the 3,000 top-selling industrial chemicals. EDF has called on the 100 largest U.S. chemical companies to test the products they make and sell and to disclose the results. The mere act of publicizing the extent of a company’s toxic emissions can spur dramatic reductions. The Ethyl Corporation introduced tetraethyl lead as a With the support of EDF and other gasoline additive in 1923, without adequate health environmental groups, the Environ- testing. Over the next 70 years, more than five million mental Protection Agency expanded its Community Right to Know program tons of lead went into gas. Most was dispersed from this year, requiring seven additional tailpipes into the air, contaminating the environment industries to report their releases of and endangering public health. EDF helped spearhead more than 600 toxic chemicals. These industries include coal and metal min- the fight against this health hazard, and lead was ing, electric utilities, and bulk petrole- eliminated from gas in 1995. In 1997, another Ethyl um terminals. metal-based additive, MMT, was banned in Canada The Pollution Prevention and largely shunned in the United States, after EDF Alliance, EDF’s “office without walls” in the Great Lakes region, is working demanded that it not be used before health tests show it to with grassroots groups in Cleveland to be safe. help them access, understand, and use information about the chemicals that are released in their communities. The “EDF’s chemical safety initiative has already focused significantly more attention on these issues ... and will improve the availability of information to the public.” Donald W. Griffin, Chairman, President, and CEO, Olin Corporation 7

Children deserve to grow up in a safe and healthful environment, free from exposure to toxic chemicals and pollution that can cause many kinds of illnesses.

goal is to give workers and neighbors but allows flexibility in how and where drinking water, sanitation, and sewage a strong voice in companies’ environ- cuts will be made, thereby producing treatment. This year a low-cost waste- mental decisions, making pollution guaranteed reductions while ensuring water treatment plant in Tijuana, prevention a standard business prac- the lowest cost. Mexico, designed and built by EDF tice. EDF plans to make similar health EDF helped establish a simi- and El Colegio de Frontera Norte, was information available to communities lar regional approach to air quality certified by the Border Environmental nationwide using the World Wide problems in the Paso del Norte region Cooperation Commission. The plant Web. around El Paso, Texas, and neighbor- reduces the amount of untreated Millions of Americans still ing Ciudad Juarez, Chihuahua. Because sewage flowing into the Tijuana River breathe unhealthful air, but this year the two cities share a common airshed, and a neighboring wildlife reserve. an important victory was won when El Paso businesses are now allowed to the Environmental Protection Agency meet some of their Clean Air Act adopted stricter clean air standards and obligations by investing in measures to directed 22 Eastern, Midwestern, and reduce pollution in Juarez, where many Southern states to curb the nitrogen more cost-effective opportunities are emissions that contribute to urban available. smog. Because much of this pollution Worldwide, most environ- travels long distances and crosses state mentally caused diseases come from lines, the agency embraced EDF’s plan contaminated water. In developing for a broad regional approach. The plan countries, EDF is striving to increase has a rigid limit on harmful emissions public and private investment in BIODIVERSITY: 8 PROTECTING WILDLIFE

AND HABITAT

Protecting the variety and abundance of species has always been a primary concern for EDF. The rate at which species are going extinct today is at least 100 times higher than before the industrial era. Increasing population growth, resource consumption, and land development worldwide are encroaching on wildlife habitat, threat- ening many species with extinction. More than half of the endangered species in America depend on privately owned land, and EDF has developed two major initiatives to pre- serve such habitat. One program, under the Farm Bill that EDF helped shape last year, combines state and Federal funds to help farmers restore wetlands and forests along rivers and streams. EDF worked with the state of Maryland to design and gain Federal approval for a 100,000-acre program EDF’s founding chairman, Dennis Puleston, now 91, along streams entering Chesapeake remembers visiting the Suffolk County Mosquito Control Bay. These restored wetlands and forests will provide wildlife habitat Commission more than 30 years ago. He told them that and help prevent agricultural chemi- spraying DDT was weakening ospreys’ eggshells, reduc- cals from running into the streams and ing the number of chicks hatched by more than 95%. polluting the bay. Illinois and “They refused to listen,” he recalls. “They said that Minnesota worked with EDF to pre- pare similar plans that are awaiting DDT was killing mosquitoes, and that was their job, approval, and officials in New York, and it was cheap and easy to apply—and they were not North Carolina, Oregon, and concerned with any other organisms that were being Washington State have asked for EDF’s help to develop plans as well. affected by DDT.” That prompted Puleston and his col- The second program, called leagues to bring the first in a series of legal actions that Safe Harbor, encourages landowners to ended DDT spraying on Long Island and, within five manage their property to attract and years, nationwide. nurture endangered species. It protects participating owners from incurring any added legal liability for endangered “EDF’s work in bringing about the banning of DDT was one of the most important legal victories ever won for wildlife.” Russell E. Train, Chairman Emeritus, World Wildlife Fund U.S. 9

Much of the Rocky Mountain Elk’s habitat is well protected on Federal land, such as here in Yellowstone. Many species whose habitats are found on private land, however, face the threat of extinction.

species that move onto their land, In Colorado, EDF led a coali- others to secure passage of a Federal thereby removing a disincentive that tion of environmental, recreational, and law that will facilitate ecological had kept many landowners from restor- sportsmen’s groups to thwart the legis- restoration in the Deschutes River ing wildlife habitats. The first Safe lature’s attacks on the environment. Basin, which has important steelhead Harbor plan has enrolled more than The coalition used electronic mail and and salmon populations. 23,000 acres in the Sandhills region of other means to mobilize citizens quick- EDF and a Brazilian environ- North Carolina to benefit the endan- ly against several bills that would have mental group convened an internation- gered red-cockaded woodpecker. EDF’s increased pollution and threatened al panel of experts to evaluate a naviga- model is being adopted around the wilderness. This grassroots opposition tion project that threatens the world’s country to save other species, and the led the governor to veto the bills. largest wetland, South America’s U.S. Fish and Wildlife Service has EDF particularly emphasizes Pantanal. The panel concluded that embraced this approach. the biodiversity of rivers and water- plans for the project were fundamental- EDF is also working with sheds. In an EDF-designed plan in the ly flawed, which has prompted Brazil, major forest-products companies to Pacific Northwest, an electric utility Paraguay, and international lenders to restore habitat. Westvaco worked with bought water rights from farmers, rethink the project’s future. EDF also EDF to develop a statewide Safe leaving the water in the Snake River— helped convince the Overseas Private Harbor program in South Carolina for where it benefits endangered salmon Investment Corporation to abandon the red-cockaded woodpecker, and and generates electricity—instead of support for a gold mine near the Weyerhaueser will protect the last rem- using it for marginal irrigation. In Volcanoes of Kamchatka World nant of North Carolina’s biologically Oregon, the Confederated Tribes of Heritage Nature Site in Russia’s Far rich East Dismal Swamp. Warm Springs worked with EDF and East. OCEANS: 10 REDUCING POLLUTION

AND OVERFISHING

Pollution and overfishing have dam- aged ocean ecosystems, including coastal wetlands and coral reefs, and depleted many fish stocks. Pollution from the Mississippi River, for example, has created a 7000-square-mile dead zone in the Gulf of Mexico. In the last 30 years, overfishing has driven down the average weight of swordfish caught at sea from 260 pounds to 90 pounds, a size at which swordfish are two years short of reproducing. The underlying problems include poor fisheries management, coastal development, aquaculture (fish farming), and bycatch (the inadvertent capture of one species while fishing for another). Most ocean pollution begins on land, particularly with farms and sewage treatment plants that contami- nate coastal waters. EDF’s North Carolina office has focused national In 1970, after decades of exploitation, the United States attention on pollution caused by the listed the humpback whale and the seven other species of hog industry. North Carolina alone has more than eight million hogs, whose great whales as endangered, thanks in part to EDF’s untreated waste is sprayed onto fields efforts to document their plight. At that time, the U.S. and runs into nearby streams and had been buying about 20% of the world’s whale oil, coastal estuaries. EDF helped win a and the listing ended the importation of whale products two-year moratorium on new and expanded hog farms in the state, as and halted all remaining U.S. whaling activity. It also well as limits on discharges from obliged the government to take a stand in favor of cur- sewage treatment plants. This could tailing whaling at meetings of the International serve as a national model. EDF staff are addressing the Whaling Commission. Today, most of the great whales root causes of collapsing fish stocks by are still in jeopardy, although with continued protection serving as the only environmental rep- their populations are slowly recovering. resentatives to the New England Fishery Management Council and two National Academy of Sciences advisory panels. The panels will study “There has long been a belief that the sea, at least, was inviolate, beyond man’s ability to change and to despoil. But this belief, unfortunately, has proved to be naive.” Rachel Carson 11

Throughout human history, the oceans have been a plentiful source of food, but today 13 of the world’s 17 major fishing grounds are fished out or in serious decline.

Individual Transferable Quotas, a tool number of dolphins killed in tuna nets. Aquaculture now produces advocated by EDF to prevent fish har- In a new effort, EDF is help- one-quarter of the seafood consumed vests from exceeding the level that ing to establish a network of Marine worldwide. A new EDF report, Murky would cause stocks to decline. With Protected Areas, where fishing is Waters, shows that improperly man- such quotas, each fisherman is given a banned or significantly restricted. This aged fish and shrimp farms can conta- percentage share of the total allowable year EDF worked with local groups to minate coastal ecosystems with chemi- catch and has a direct stake in the fish- designate part of the Florida Keys cals and untreated sewage. In addition, ery’s future. In North Carolina, EDF National Marine Sanctuary as a reserve escaped fish and shrimp can spread dis- helped win a sweeping new law to in which harvesting of fish and other ease and compete with native species. limit fish catches to sustainable levels wildlife is prohibited. EDF is working Along the Texas Gulf Coast, the lead- and to protect critical marine habitats. to establish other protected areas in ing site of U.S. shrimp farms, EDF is EDF also worked to reduce various coastal waters. fighting to extend state wastewater the problem of bycatch, where fishing In California, EDF continued discharge regulations to all coastal gear or methods cause unintended its longstanding efforts to restore the shrimp farms. At an international harm to other species. EDF helped win ecological integrity of the San meeting of the aquaculture industry, new regulations to protect albatrosses Francisco Bay and Delta. To assist in EDF organized environmental and and other seabirds from drowning on Bay-Delta restoration, EDF scientists other groups from around the world to longline fishing hooks in the North recommended a system of key indica- advocate alternative, environmentally Pacific, and helped enact U.S. legisla- tors of ecosystem health and developed responsible fish-farming practices. tion that will underpin an enforceable measures to put needed freshwater into international agreement to limit the the bay. ■ Earth systems scientist BRIAN C. O’NEILL WHO’S WHO (Ph.D., N.Y.U.) advances public education on climate change and population growth. 12 ON THE ■ Atmospheric physicist MICHAEL OPPENHEIMER (Ph.D., Univ. of Chicago) is EDF’s chief scientist and leads efforts to avert global warming. EDF ■ Attorney WILLIAM J. ROBERTS (J.D., Univ. of Chicago; M.A., Yale Univ.) directs EDF’s strategic PROGRAM STAFF communications and legislative efforts. ■ Economic analyst JOHN F. RUSTON (M.C.P., M.I.T.) works with businesses to reduce the environmental impact of products and packaging. CALIFORNIA ■ Water resources analyst DAVID YARDAS (M.S., ■ ■ Computer specialist CHRISTO ARTUSIO (B.A., Univ. of Calif., Berkeley) works to protect and Scientist DEBORAH SALON (B.A., Carleton Univ. of Calif., Berkeley) works to create incen- restore Western aquatic ecosystems. College) analyzes opportunities to reduce emis- tives for widespread use of renewable energy. sions from automobiles and trucks. MASSACHUSETTS ■ Economist MICHAEL W. CAMERON (M.P.P., ■ General Counsel JAMES T.B. TRIPP (LL.B., Yale Harvard Univ.) designs transportation reforms to ■ Research associate TRACY DYKE (B.A., Oberlin Univ.) plays a major role in transportation, reduce pollution in California and nationally. College) works on corporate partnership projects. ecosystem restoration, and solid waste projects. ■ ■ RANCIS HAPMAN Management specialist RALPH EARLE (M.P.P.M., Computer specialist F C (B.A., NORTH CAROLINA Univ. of Calif., San Diego) works to lessen envi- Yale Univ.) leads EDF’s corporate partnership ronmental effects of electricity production. efforts. ■ Marine biologist MICHELLE DUVAL (Ph.D., Duke ■ Engineer DEBORAH A. FALCONE (M.S., Stanford Univ.) is working on water quality and marine ■ Marine ecologist RODNEY M. FUJITA (Ph.D., fisheries. Boston Univ., Marine Biological Laboratory) Univ.) develops products and programs to works to protect marine ecosystems and fisheries. reduce environmental impacts of businesses. ■ Office director JANE PREYER (M.P.A., Univ. of ■ Marketing analyst VICTORIA MILLS (M.A., Johns North Carolina) works on water quality and con- ■ Attorney ROBERT GARCÍA (J.D., Stanford Univ.) servation issues. advances water and transportation measures Hopkins Univ.) advances partnerships with con- that enhance the environment and civil rights. sumer products companies. ■ Biologist DOUGLAS N. RADER (Ph.D., Univ. of ■ Policy analyst ELIZABETH STURCKEN (M.P.P., North Carolina) works to protect oceans, coastal ■ Attorney THOMAS J. GRAFF (LL.M., London habitats, and marine life. Univ.; LL.B., Harvard Univ.) focuses on reforming Harvard Univ.) works with major corporations to Western water and transportation systems. reduce packaging waste. ■ Ecologist JOSEPH RUDEK (Ph.D., Univ. of North ■ Research associate LINDA TSANG (B.S., M.I.T.) Carolina) works to protect the quality and biodi- ■ Computer specialist DANIEL A. KIRSHNER (B.A., versity of aquatic ecosystems. Univ. of Calif., Santa Cruz) advances utility com- advances corporate environmentalism. petition and renewable energy development. ■ Attorney DAN WHITTLE (J.D., Univ. of NEW YORK Colorado) works to improve North Carolina ■ Policy analyst MEG KREHBIEL (B.A., Dartmouth water quality and restore marine fisheries. College) advocates Bay Area transportation reforms. ■ Deputy Director for Programs MARCIA ARONOFF (B.A., Oberlin College) leads EDF’s program staff. ■ Engineer KEN LEISERSON (M.S., Univ. of Calif., OREGON ■ Ecologist JANINE BLOOMFIELD (Ph.D., Yale Univ.) Berkeley) develops information technology-based ■ Economist ZACH WILLEY (Ph.D., Univ. of Calif., tools to reduce emissions of toxic chemicals. advances knowledge of how global warming might affect natural and human resources. Berkeley) develops market policies and transac- ■ Resource specialist DEBORAH MOORE (M.S., tions for ecological goals in the Northwest. Univ. of Calif., Berkeley) works to protect rivers, ■ Economist DANIEL J. DUDEK (Ph.D., Univ. of public health, and water quality internationally. Calif., Davis) develops markets to empower ROCKY MOUNTAIN entrepreneurial solution of pollution problems. ■ Toxicologist BILL PEASE (Ph.D., Univ. of Calif., ■ Resource analyst CHELSEA CONGDON (M.A., Univ. Berkeley) identifies risks to human health caused ■ Atmospheric scientist STUART R. GAFFIN (Ph.D., of Calif., Berkeley) protects aquatic ecosystems by exposure to toxic chemicals. N.Y.U.) quantifies the impact of population and and other resources in the West and Mexico. consumption on global climate projections. ■ Attorney DAVID ROE (J.D., Yale Univ.) develops ■ Outreach coordinator SCOTT INGVOLDSTAD (B.A., innovative strategies for reducing human expo- ■ Biologist REBECCA J. GOLDBURG (Ph.D., Univ. Colorado College) builds coalitions with other sures to toxic chemicals. of Minnesota) advocates environmentally sound environmental and grassroots groops. practices for aquaculture and biotechnology. ■ Computer specialist SPRECK ROSEKRANS (B.A., ■ Environmental engineer DANIEL F. LUECKE Univ. of Calif., San Diego) works on energy and ■ Attorney D. DOUGLAS HOPKINS (J.D., Univ. of (Ph.D., Harvard Univ.) advances restoration of water management alternatives. Virginia) works to rebuild depleted marine fish- aquatic habitats in the Southwest. eries through innovative management. ■ ■ Resource analyst KATRINA SCHNEIDER (B.A., Attorney JAMES MARTIN (J.D., Northwestern Univ. of Calif., Berkeley) constructs water policy ■ Project manager AZUR MOULAERT (M.S., North School of Law) works to protect air quality and and flood management solutions for California. Carolina State Univ.) coordinates EDF’s Member aquatic ecosystems in the West. Action Network. 13

EDF’s mission is being carried out today by 160 dedicated staff members, many of whom are profiled on these pages.

TEXAS ■ Legislative Director STEVE COCHRAN (B.S., ■ Attorney BRUCE RICH (J.D., Univ. of Penn.) ■ Scientist RAMÓN ALVAREZ (Ph.D., Univ. of Calif., Louisiana State Univ.) coordinates EDF’s efforts leads EDF’s efforts to reform international finan- Berkeley) strives to reduce pollution on the U.S.- in Congress and before administrative agencies. cial institutions such as the World Bank. Mexico border and improve Texas air quality. ■ Biochemist RICHARD A. DENISON (Ph.D., Yale ■ Engineer JACKIE PRINCE ROBERTS (M.E.S., ■ Economist PETER M. EMERSON (Ph.D., Purdue Univ.) designs ways to include environmental M.P.P.M., Yale Univ.) advances EDF’s joint work Univ.) works with communities to design low- considerations in product concept and design. with consumer products companies. cost strategies to cut pollution. ■ Engineer LOIS N. EPSTEIN (M.S., Stanford ■ Anthropologist STEPHAN SCHWARTZMAN (Ph.D., ■ Attorney JIM MARSTON (J.D., N.Y.U.) develops Univ.) partners with grassroots groups to pro- Univ.of Chicago) works on sustainable develop- programs on energy efficiency and works to mote pollution prevention. ment and protection of the Amazon. clean up the U.S.-Mexico border. ■ Attorney KAREN L. FLORINI (J.D., Harvard ■ Attorney TIMOTHY D. SEARCHINGER (J.D., Yale ■ Attorney KARL R. RÁBAGO (J.D., Univ. of Texas; Univ.) advances environmental health by pro- Univ.) is developing innovative farm programs to LL.M., Pace Univ.) advances renewable energy moting access to data and control of hazards. restore habitat and improve water quality. and energy efficiency. ■ Sociologist and agronomist STEPHANIE FRIED ■ Toxicologist ELLEN K. SILBERGELD (Ph.D., Johns ■ Scientist CARLOS A. RINCON (Ph.D., Instituto (Ph.D., Cornell Univ.) focuses on sustainable Hopkins Univ.), adjunct staff, promotes efforts to Tecnologico de Monterrey) works to improve air tropical resource management. end human exposure to lead and dioxin. quality on the Texas-Mexico border. ■ Attorney JOSEPH GOFFMAN (J.D., Yale Univ.) ■ Outreach coordinator BENJAMIN SMITH (M.A., ■ Attorney MELINDA E. TAYLOR (J.D., Univ. of advocates economic incentives to cut pollution George Washington Univ.) advances EDF’s pollu- Texas) leads EDF’s efforts to restore ecosystems. from cars, power plants, and factories. tion prevention work in Cleveland. ■ Economist KORINNA HORTA (M.A., Johns ■ Economic analyst SARAH M. WADE (M.P.P.M., WASHINGTON, DC Hopkins Univ.) protects forests and watersheds M.E.S., Yale Univ.) develops emission reduction ■ Economic analyst CAROL ANDRESS (B.A., Duke affected by international investments. markets to solve atmospheric pollution problems. Univ.) works to improve the environmental con- ■ Attorney KEVIN MILLS (J.D., Univ. of Michigan) ■ Ecologist DAVID S. WILCOVE (Ph.D., Princeton dition of Great Lakes urban communities. directs EDF’s pollution prevention activities and Univ.) develops strategies to protect endangered ■ Attorney MICHAEL J. BEAN (J.D., Yale Univ.) Great Lakes grassroots network. species in the United States. heads EDF’s efforts to conserve endangered ■ International Counsel ANNIE PETSONK (J.D., species and other wildlife. Harvard Univ.) develops legal tools for tackling WISCONSIN ■ Economist ROBERT BONNIE (M.E.M., M.F., Duke global environmental problems. ■ Attorney BILL DAVIS (J.D., Univ. of Wisconsin) Univ.) designs economic incentives for wildlife ■ Civil engineer MICHAEL REPLOGLE (M.S.E., Univ. implements pollution prevention practices in the conservation on private lands. of Penn.) promotes transportation and land use Great Lakes region. ■ Research associate KEVIN T. BRYAN (B.S.C.E., reforms to reduce motor vehicle dependence. Howard Univ.) works on corporate partnerships. ■ Program Managers FINANCIAL ANALYSIS 14

TOTAL PROGRAM AND SUPPORTING SERVICES Thanks to the generosity of our mem- current income and support for future bers, Benefactors, foundations, and years. Two percent was spent on the In millions of dollars 23.5 other contributors, the Environmental acquisition of new members. Defense Fund’s total program and sup- In accordance with the poli- 19.5 porting services for fiscal year 1997 cies of EDF’s Board of Trustees for reached $23.5 million. EDF received a building the organization’s capital record amount of financial support this reserves, $1.4 million of the change in year, including $25.8 million in oper- net assets from operations was trans- ating support and revenue, an 11% ferred to EDF’s endowment and long- 5.9 increase over the previous year. In term investment. Together with 2.6 addition, non-operating funds of $1.7 bequests and investment and other million in bequests and $2.8 million income, this increased EDF’s net assets 1982 1987 1992 1997 in investment and other income were by 46% to more than $21.7 million at provided directly for EDF’s endow- September 30, 1997. Prudent man- ment and long-term investment. agement and successful fundraising has SOURCES OF OPERATING SUPPORT AND REVENUE EDF’s 21st Century Campaign set the stage for future growth and has to raise $25 million in program and positioned EDF to address the prob- Membership and Contributions 47% endowment funds reached its goal this lems of climate, health, biodiversity, year and met the deadline for the “all- and oceans on the larger scale outlined or-nothing” Kresge Foundation chal- in its strategic plan. lenge. This resulted in an additional Foundation $1 million gift from Kresge toward Grants 34% the purchase of new computer equip- ment and networks. These improve- Miscellaneous and Investment ments have enhanced communication Income 8% among EDF’s 160 employees and its many constituencies around the world. Government and Other Grants 4% Support from membership and contributions in fiscal 1997 Bequests 7%* totaled $12 million, representing 47% of operating support and revenue. EDF has more than 300,000 active mem- EXPENSES bers. Major support also came from more than 160 foundations, with Program grants totaling $8.7 million, or 34% Services 80% of the total. Eighty percent of EDF’s Note: Under policies established by EDF’s Board of Trustees, the amount of bequests to expenses in fiscal 1997 went directly to be reflected in operating support and revenue Development 10% program services. Program objectives is determined by the average of the most recent five years, and 90% of the bequests were achieved with no growth in received are to be transferred to long-term Membership 4% expenses from 1996, thanks to a year- investment. Accordingly, in fiscal year 1997, long strategic planning process that EDF realized an increase in net assets from Management and unrestricted operations of $1,465,339 and General 4% produced a sharper focus of program- was required to transfer $1,450,093 to long- matic efforts and significant operating term investment. New Member efficiencies. Four percent of the total Copies of the complete, audited financial Acquisition 2% expenses were for management and statement from which this information is administration, and 14% for the reported may be obtained by writing to Environmental Defense Fund, 257 Park *Of this amount, 90% was transferred to long-term investment and not fundraising needed to generate both Avenue South, New York, NY 10010. used for operations. STATEMENT OF ACTIVITIES

Year ended September 30 15

Temporarily Permanently Total Total Operating Support and Revenue Unrestricted Restricted Restricted 1997 1996 Support: Membership and contributions $10,975,793 $ 1,026,544 $12,002,337 $12,137,035 Foundation grants 1,312,500 7,397,160 8,709,660 6,614,131 Government and other grants 1,098,234 1,098,234 1,261,608 Bequests* 1,700,943 99,497 1,800,440 1,105,668 Total support 13,989,236 9,621,435 - 23,610,671 21,118,442 Revenue: Investment income 457,892 139,198 597,090 444,932 Awarded attorneys’ fees 329,479 329,479 231,529 Fees, royalties, and other income 1,268,256 1,268,256 1,501,303 Total revenue 2,055,627 139,198 - 2,194,825 2,177,764 Net assets released from restrictions 8,885,873 (8,885,873) - - Total support and revenue 24,930,736 874,760 - 25,805,496 23,296,206

Expenses Program services: Climate 5,644,877 5,644,877 6,090,701 Health 3,757,904 3,757,904 3,568,132 Biodiversity 2,842,317 2,842,317 2,569,157 Oceans 820,937 820,937 603,308 Education 4,607,862 4,607,862 4,779,390 Legislative action 584,739 584,739 506,629 Membership activities 436,449 436,449 560,022 Total program services 18,695,085 - - 18,695,085 18,677,339 Supporting services: Management and general 890,311 890,311 891,485 New member acquisition 519,253 519,253 428,824 Fundraising: Membership 1,072,540 1,072,540 1,313,877 Development 2,288,208 2,288,208 2,163,723 Total supporting services 4,770,312 - - 4,770,312 4,797,909 Total operating expenses 23,465,397 - - $23,465,397 $23,475,248

Changes in Net Assets From unrestricted operations 1,465,339 1,465,339 34,525 From restricted operations 874,760 874,760 (213,567)(213,567) Transfer to long-term investment (1,450,093) (1,450,093) - Non-operating changes: Transfer from operating activities 1,450,093 1,450,093 Bequests 1,703,030 1,703,030 2,340,931 Investment and other income 1,579,872 742,924 457,160 2,779,956 780,173 Net assets released from restrictions 335,777 (335,777) - - Total change in net assets 5,084,018 1,281,907 457,160 6,823,085 2,942,062

Net assets, beginning of year 7,420,438 4,621,155 2,861,648 14,903,241 11,961,179

Net assets, end of year $12,504,456 $ 5,903,062 $ 3,318,808 $21,726,326 $14,903,241 BOARD OF TRUSTEES 16

John H.T. Wilson, Chairman Christopher J. Elliman David P. Rall, M.D., Ph.D. Advisory Director, Morgan Stanley and President, Tanager Corporation Former Director, National Institute of Co. Incorporated Environmental Health Sciences John W. Firor, Ph.D. Gretchen Long Glickman, Senior Research Associate, National Lewis S. Ranieri Vice Chairman Center for Atmospheric Research Chairman and Chief Executive Officer, Chairman, Institute of Ecosystem Ranieri & Co., Inc. Studies; Trustee, National Outdoor Robert E. Grady Leadership School Managing Director, BancAmerica E. John Rosenwald, Jr. Robertson Stephens, San Francisco; Vice Chairman, The Bear Stearns Teresa Heinz, Vice Chairman Lecturer in Public Management, Companies, Inc. Chairman, Heinz Family Philanthropies Stanford Graduate School of Business John McAllen Scanlan Frank E. Loy, Vice Chairman Norbert S. Hill, Jr. Attorney, Austin, Texas Chairman, League of Executive Director, American Indian Conservation Voters Science & Engineering Society, Boulder, David H. Smith, M.D. Colorado David Hamilton Smith Investments, Charles J. Hamilton, Jr., Treasurer Inc., New York Partner, Battle Fowler, New York Lewis B. Kaden Partner, Davis, Polk & Wardwell, Frank E. Taplin, Jr. Arthur P. Cooley, Secretary ■ New York Honorary Director and Former Expedition leader and naturalist, President, Metropolitan Opera Special Expeditions Gene E. Likens, Ph.D. Association; Trustee Emeritus, Institute Director, Institute of Ecosystem Studies, for Advanced Study Nancy O. Alderman Millbrook, New York President, Environment and Human W. Richard West, Jr. Health, Inc.; Former President, Jane Lubchenco, Ph.D. Director, National Museum of the Connecticut Fund for the Environment Wayne & Gladys Valley Professor of American Indian, The Smithsonian Marine Biology, Oregon State Institution Karen M. Barnes University Executive Vice President, 20th Century Robert W. Wilson Fox Home Entertainment George G. Montgomery, Jr. Investor Advisory Director, Hambrecht & Quist Rod A. Beckstrom LLC, San Francisco Wren W. Wirth Founder and CEO, C● ATS Software Environmentalist, Boulder, Colorado Inc., Palo Alto, California Harold A. Mooney, Ph.D. Paul S. Achilles Professor of Paul Junger Witt Wendy W. Benchley Environmental Biology, Stanford Partner, Witt, Thomas, Harris Trustee, New Jersey Environmental University Productions Federation Robert W. Musser Charles F. Wurster, Ph.D. ■ James W.B. Benkard President, General Service Foundation, Professor Emeritus, Marine Sciences Partner, Davis, Polk & Wardwell, Aspen, Colorado Research Center, State University of New York New York at Stony Brook William A. Newsom The Reverend Sally G. Bingham Associate Justice, California Court of Commission for the Environment, Appeal, Retired Episcopal Diocese of California HONORARY TRUSTEES Paul H. Nitze Jessica Catto Founder and Distinguished Research Amyas Ames Turquoise Land Corp.; Trustee, The Professor in Strategic Studies and H. Lewis Batts, Jr., Ph.D. ■ Conservation Fund American Foreign Policy, Paul H. Nitze Roland C. Clement School of Advanced International Mimi Cecil Anthony A. Lapham Studies, Johns Hopkins University Conservationist; Chairman, NCEDF Margaret W. Owings Board of Trustees Dennis Puleston ■ George M. Woodwell, Ph.D. ■

Founding Trustees ■ REGIONAL BOARDS AND ADVISORY COUNCILS 17

National Council Rocky Mountain North Carolina Robert L. Bachner Donald W. Aptekar, M.D. Norwood E. Bryan, Jr. John R. Bermingham Harriet Moyer Aptekar Mimi Cecil Sally Lyons Brown Leslie Barclay The Honorable James McClure Clarke Gilbert Butler Currie C. Barron John S. Curry David Challinor, Ph.D. Thomas A. Barron Christopher J. Elliman Yvon Chouinard John R. Bermingham Karen E. Gottovi David G. Crane Jessica Catto Mary L. Hill June Dunn Davis Deedee Decker The Honorable Hamilton C. Horton, Jr. Lorenzo di Bonaventura Peter Decker Frances D. Inglis Edith H. Fisher Beverly A. Deming William E. Keenan Peter T. Flawn Robert H. Deming R. Bruce Lawrence Irvine D. Flinn Al Dietsch Percy R. Luney, Jr. Daniel P. Garcia Germaine Dietsch Larry G. Manofsky Jane Geniesse Mary S. Dominick Thomas M. Massengale Christopher Getty Michael Edesess Hugh M. Morton Carol P. Guyer John W. Firor, Ph.D. Jim Protzman Edward H. Harte Norbert S. Hill, Jr. David Rall, M.D., Ph.D. Lisa Henson Kathy LeMieux-Rodman William G. Ross, Jr. Oliver A. Houck Betsy Marston Frank S. Shaw, M.D. Freeborn G. Jewett, Jr. Ed Marston Donald Kennedy John McBride Texas The Honorable Richard D. Lamm Ann Moore Ray Allen Melvin B. Lane Mike Moore W. Douglas Ankenman, Jr. Thomas E. Lovejoy, Ph.D. Robert Musser Elaine M. Barron, M.D. Wendy W. Luers Gilman Ordway Laura Burney George A. Miller Bruce C. Paton, M.D. B. Henry Estess, Jr., M.D. James Moloney Patricia A. Paton Marye Anne Fox David O’Connor Michael Wassegijig Price Gustavo Garcia Gilman Ordway Beth Strickland Edward H. Harte, Emeritus John W. Rowe Thomas Strickland Karen J. Hixon Roger W. Sant Wren W. Wirth Clark Hubbs Edson W. Spencer Dyan Zaslowsky Tom Leonard Lynn Stern Richard W. Lowerre Barbra Streisand Thomas G. Mason R.E. Turner Kay Gunderson Reeves Robert B. Wallace Carroll G. Robinson Warren M. Washington, Ph.D. Thomas W. Rollins Joanne Woodward John M. Scanlan Blaikie F. Worth Josephine P. Smith Alfred T. Stanley Herman Stude Kerry Tate James G. Teer David A. Todd Benjamin F. Vaughan, IV Mary Griffith Wallace Kirk Watson William H. White EDF STAFF 18

Executive Director Schneider, W.R. Zach Willey, David Media Inquiries Fred Krupp Yardas; Rocky Mountain: Chelsea New York: Amy Farrell, Allan Congdon, Daniel F. Luecke; North Margolin; Washington: Claudia Cahill, Deputy Directors Carolina: Michelle Duval, Jane Preyer, Lisa Swann Marcia Aronoff (Programs) Douglas N. Rader, Joseph Rudek; Edward Bailey (Operations) Texas: Ramón Alvarez, Peter M. Membership Emerson, Carlos A. Rincon; Washington: Jennifer Coleman, Laura Associate Director Massachusetts: Tracy Dyke, Ralph Earle, Gassler, Meredith Glueck, Sara Joel Plagenz Deborah A. Falcone, Victoria Mills, Kindler, Jami K. Long, Robyn Elizabeth Sturcken, Linda Tsang O’Donnell, Lyat Sheintal Director of Development Paula Tupper Hayes Administrative and Office Managers Program Associates New York: Christopher Samuelson; Director of Finance New York: Beverly Atkins, Karen Washington: Cheryl L. Pickard; A.J. Pietrantone Kenyon; Washington: Kim M. Brooks, California: Pamela Franz; Rocky Margaret McMillan; California: Mountain: Jennifer Chergo; North Director of Marketing Kristin Lawton Carolina: Melody S. Scott; Texas: Lucy Jewett Lowenthal Phyllis Burns; Massachusetts: Carolyn Assistants W. Green Director of Strategic New York: Maxine Adams, Manja E. Communications Hoevenaars, Keisha Howard, Linda Outreach William J. Roberts Jantzen, Jill Kleinman, Georgia R. New York: Azur Moulaert; Pease, James M. Ricketts, Lois Washington: Benjamin Smith; Attorneys Shellie, Lora Tarantino; Washington: California: Meg Krehbiel; Rocky New York: D. Douglas Hopkins, James Senta Boardley, Mechelle Evans, Mountain: Scott Ingvoldstad T. B. Tripp (General Counsel); Monique Forte, Jacqueline Hair, Washington: Michael J. Bean, Bill Kenneth W. Walsh; California: Publications/Public Affairs Davis, Karen L. Florini, Joseph Julene H. Freitas, Renee Henry, New York: Tim Connor, Roberta Goffman, Kevin P. Mills, Annie Holly Rose, Robyn Wilson; Rocky Desmond, Barbara Kantzos, Norma Petsonk, Bruce M. Rich, Timothy D. Mountain: Lia Morris; North Carolina: H. Watson Searchinger; California: Robert García, Marta Brown; Texas: B.J. Dush, Thomas J. Graff, David Roe; Rocky Shannon Heyck, Elaine Smith; Principal Consultants Mountain: James Martin; North Massachusetts: Heather O’Brien Pamela B. Baker, Adam Diamant, Carolina: Dan Whittle; Texas: Jim Tira Foran, Susan L. Harvey, Karen Marston, Karl R. Rábago, Melinda E. Development Levy, Eric Thompson, Terry F. Young Taylor New York: Rory Beelek, Anne Borland, Dede Devlin, Catherine K. Scientists, Economists, and Dillingham, Anne B. Doyle, Policy Specialists Le’Shawn Hatcher, Lisa P. Keith, New York: Janine Bloomfield, Daniel J. Roger F. Pasquier, David Rosen, Dudek, Stuart R. Gaffin, Rebecca J. Charles Urquhart, Heidi Williamson; Goldburg, Brian C. O’Neill, Michael Washington: Alison McAuley Loder; Oppenheimer, John F. Ruston, California: Thomas Huntington; Deborah Salon; Washington: Carol Rocky Mountain: Beverly Noun; North Andress, Robert Bonnie, Kevin T. Carolina: Kelly Collings Hawkins; Bryan, Steve Cochran, Richard A. Texas: Molly Stevens Denison, Lois N. Epstein, Stephanie Fried, Korinna Horta, Jackie Prince Finance/Administration Roberts, Michael Replogle, Stephan New York: Daniel Bello, Andre M. Schwartzman, Ellen K. Silbergeld, Cadet, Cedric Edmundson, Maryann Sarah M. Wade, David S. Wilcove; Fabian, Brian R. Holmes, Steve California: Christo Artusio, Michael W. Hughes, Matthew Morgan, Brian Cameron, Francis Chapman, Rodney Seirup, Louann Serraneau, Jamie M. Fujita, Daniel A. Kirshner, Ken Silver, Amy Slattery; Washington: Ned Leiserson, Deborah Moore, William S. Bade, Anil Jain; California: Tony Fader Pease, Adolph S. Rosekrans, Katrina FORM OF BEQUEST

Environmental Defense Fund You can make a lasting contribution Offices toward protecting the environment by National Headquarters considering a special gift to EDF of 257 Park Avenue South cash, securities, or real estate, or by New York, NY 10010 means of a gift through your will. 212 505-2100 When your attorney draws up your will, we suggest using the fol- 1875 Connecticut Avenue, N.W. lowing language: Washington, DC 20009 “I hereby give and bequeath 202 387-3500 ______to the Environmental Defense 800 684-3322 (Membership) Fund, a not-for-profit membership organization incorporated by the laws 5655 College Avenue of the State of New York, having as its Oakland, CA 94618 principal address 257 Park Avenue 510 658-8008 South, New York, New York 10010, for EDF’s general purposes.” 1405 Arapahoe Avenue If you wish to discuss the Boulder, CO 80302 language of your bequest with a mem- 303 440-4901 ber of the EDF staff, or if you would like additional information on planned 2500 Blue Ridge Road giving opportunities, including real Raleigh, NC 27607 estate gifts, please contact Anne B. 919 881-2601 Doyle at EDF’s New York headquarters, telephone (212) 505-2100. 44 East Avenue Austin, TX 78701 512 478-5161

Project Office 6 Faneuil Hall Marketplace Boston, MA 02109 617 723-2996 PHOTO CREDITS E-mail: [email protected] Cover Michael L. Smith Internet: www.edf.org 2 T. Charles Erickson 3 Kenneth Chen 4 Bruce Forster/Tony Stone Images 5 T. Charles Erickson The Environmental Defense Fund is a 6 Archive Photos not-for-profit organization that relies 7 T. Charles Erickson on your support. All gifts are tax 8 UPI/Corbis-Bettmann deductible. For more information con- 9 Chad Ehlers/International tact the National Headquarters. Stock 10 Flip Nicklin/Minden Pictures 11 Natalie Fobes/Tony Stone Images 13 T. Charles Erickson

AUDITORS Coopers & Lybrand

DESIGN Lazin & Katalan, nyc ™

National Headquarters 257 Park Avenue South New York, NY 10010 212 505-2100 www.edf.org