ENVIRONMENTAL DEFENSE FUND 2008 ANNUAL REPORT Soaring above its nest on New York’s Fifth Avenue, this red-tailed hawk signals a resurgence of many raptors nationwide, including bald eagles and ospreys. Both species have recovered dramatically as a result of Environmental Defense Fund’s successful initial battle, begun in 1967, to replace DDT with safer pesticides.

ONLINE: See founding trustees Charles Wurster and the late Dennis Puleston talk about the DDT victory at edf.org/ddt08. Find all web links for this report, and a downloadable electronic version, at edf.org/annualreport08.

FINDING THE WAYS THAT WORK

STRONG SCIENCE UNCOMMON PARTNERSHIPS ECONOMIC INCENTIVES 2 FROM THE CHAIRMAN AND PRESIDENT

4 SPOTLIGHT ON PARTNERSHIPS

8 CLIMATE

14 SPOTLIGHT ON CHINA

TABLE OF CONTENTS 16 OCEANS

20 SPOTLIGHT ON LEGISLATIVE ACTION

22 ECOSYSTEMS

26 HEALTH

30 WHO’S WHO

36 FINANCIAL COMMENTARY

38 TRUSTEES, ADVISORY COUNCILS AND REGIONAL BOARDS

©2008 Environmental Defense Fund 100% recycled (50% post-consumer) totally chlorine-free paper Please share this report with others and invite them to join you in supporting our work. INVEST IN OUR WORLD I’ve made my living as a businessman and investor, and that’s what got me interest- ed in Environmental Defense Fund. As head of Time Warner, I served in 1991 with Fred Krupp on a presidential commission, where I witnessed firsthand the business- like approach EDF brings to the table in creating fair and equitable solutions to environmental problems. EDF wins lasting results thanks to a bipartisan approach, the use of economic incentives, and partnerships with diverse, often unexpected, allies from the private sector. In these times, there is no better investment than a contribution to Environmental Defense Fund. We have shown how helping the environment and helping the econo- my can, in fact, be mutually beneficial. Our strategy of emphasizing clean and secure energy, job creation and a healthy environment is just the prescription our country and our world need today. I am delighted to welcome my colleague and fellow trustee, Carl Ferenbach, who will become EDF’s chairman in May 2009, and I congratulate the staff on their re- markable accomplishments during my seven years as chairman. My heartfelt thanks to all our members and friends who, despite a difficult economy, were more generous with their contributions this year than ever before, making possible the impressive Chairman N. J. Nicholas, Jr. with chairman-elect Carl Ferenbach results you’ll read about in the following pages.

N. J. NICHOLAS, JR. Chairman of the Board

WHAT OTHERS SAY ABOUT ENVIRONMENTAL DEFENSE FUND

“… America’s most economically literate green campaigners” The Economist

“…the power broker rewarding good behavior” Time

“…one of the hottest environmental groups” The Wall Street Journal

2 “… arguably the most influential environmental group around” The New Republic

THE POWER OF INVENTION People ask why I’m hopeful despite global warming and the deep recession. I’m hopeful ­because President-elect Obama has called for a cap-and-trade plan to kick-start economic renewal and achieve reductions in global warming pollution at low cost. His initiative will face a tough battle in Congress, and we’ll put our energies into getting it done. I’m also hopeful because of people like Conrad Burke, Bernie Karl and Jack Newman. These and other inventors are finding new ways to tap energy from the Earth, the seas, the sun — even from yeast. New technologies give us power to solve global warming by cutting carbon dioxide emissions and helping countries like China and India do the same. Washington must unleash this new energy economy — and the jobs that come with it — by enacting a declining cap on ­carbon, a cap that will send companies knocking on inventors’ doors. Environmental Defense Fund has achieved major gains this year in our four focus areas of climate, oceans, ecosystems and health, and executive director David Yarnold and staff have set out ambitious goals for the coming year. The new president and Congress will face daunting challenges in 2009. That’s why we are integrating our strategies for environmental protection into the need to revive the economy. As Oberlin professor David Orr puts it, “Hope is a verb with its sleeves rolled up. Hopeful people are actively engaged in defying or changing the odds.” EDF has hope for the future President Fred Krupp with David Yarnold, executive director of EDF and and, with your help, we are on track to achieve major successes in the year ahead. president of Environmental Defense Action Fund

Fred Krupp President

A BEST-SELLING MESSAGE Fred Krupp and co-author Miriam Horn illustrated the abundance of new energy technologies like solar thermal power in their New York Times best-selling book Earth: The Sequel, soon available as a Norton paperback.

Online: Meet energy entrepreneurs at edf.org/unleash08

3 SPOTLIGHT ON PARTNERSHIPS “Environmental Defense Fund has again raised the bar to benefit the whole world.” Arnold Schwarzenegger Governor of California

VP David Festa and corporate partnerships managing director Elizabeth Sturcken talk with Governor Schwarzenegger at the launch of our 2008 Innovations Review at our San Francisco office.

A TRACK RECORD OF ENVIRONMENTAL INNOVATION 1990 1995 1997 1998

In the first collaboration between North Carolina’s Starbucks partners We work with UPS to an environmental group and a Pinehurst Resort with us to reduce improve the company’s leading corporation, EDF’s part- becomes our first waste, increasing packaging, spurring nership with McDonald’s does partner in Safe the use of reusable industry-wide changes. away with foam-plastic sandwich Harbor, a program mugs and later The new packaging boxes and eliminates 150,000 that provides introducing the first saves energy and tons of packaging waste over ten landowners takeout cup with reduces solid waste years. Other restaurants quickly incentives to help post-consumer and air pollution. follow suit. endangered species. recycled content.

4 For Fiscal Year 2008, our Partnerships work is included in the Climate, Health, Oceans and Ecosystems lines of our financial statement. THE BEST ADVICE “To maintain our objectivity, we accept MONEY CAN’T BUY no funding from our corporate part- ners. That independence frees us to drive change across entire industries.” Gwen Ruta VP Corporate Partnerships

MAKING GREEN THE NEW BUSINESS AS USUAL Our unique approach attracts powerful allies “Significant” and “surprising” — that’s sisted on addressing global warming, “Business-nonprofit partnerships At the Innovations Review launch in what Fortune magazine had to say which led the company to cancel its are especially relevant today,” says our San Francisco office, California about our new partnership with plans to build eight dirty coal plants. Bob Langert, McDonald’s vice Governor Arnold Schwarzenegger private equity giant Kohlberg Kravis As Thomas Friedman wrote in The president for corporate social respon- praised the initiative: “EDF recog- Roberts (KKR). For Environmental New York Times, “Every college activist sibility and one of our first partners. nized that ‘business as usual’ was Defense Fund, it represented the next should study this story.” “We need to seek out experts like changing,” he told a roomful of step in our nearly 20-year history of In 2008, we took the partnership EDF. We simply don’t know enough CEOs. “And they created a new way uncommon partnerships. a giant step further. KKR sought ourselves.” to assess environmental innovation.” EDF brings about lasting change our help to measure and improve To spur change beyond our own ONLINE: See the Yale School not through confrontation but through environmental performance at key partnerships, we assembled a team of of Management’s multimedia case constructive engagement with power- companies in its portfolio. It’s the experts to identify new green busi- study of our role in the $45 billion ful market leaders. The environmental first time a nonprofit group is help- ness practices for Innovations Review, TXU buyout at edf.org/txu08. innovations we develop together can ing to green the portfolio of a private a report on advances that are saving See more business innovations at edf.org/innovations08. transform entire industries while im- equity firm. The analytic tools we’re companies hundreds of millions of proving profits. developing will enable managers dollars. The 20 innovations range We first worked with KKR in 2007 at companies like Toys “R” Us and from large-scale telecommuting pro- when we were invited to help draft the U.S. Foodservice to assess and track grams, which reduce business travel, terms of the largest buyout in corpo- improvements. We’ll share the inno- to power purchase agreements, which rate history, the $45 billion acquisition vations with others to drive industry- let companies install solar power with of Texas electric utility TXU. We in- wide change. no upfront capital costs.

1999 2000 2001 2002

Bristol-Myers Squibb Seven of the world’s Working with us, Norm With our help, BP and EDF create MERGE, largest corporations, Thompson Outfitters meets its target for a computer program including BP and switches all its catalogs to reducing greenhouse to help design better DuPont, partner with recycled paper. This sets gas emissions eight product packaging, later EDF and set targets a new standard for the years early, saving used by more than 100 for reducing their catalog industry, inspiring $650 million in the companies. greenhouse gas companies like L.L. Bean process. emissions. and Dell to turn to recycled paper.

5 “Environmental Defense Fund is a valuable contributor to our effort to operate more sustainably, which means helping both the environment and our business.” Matt Kistler Senior vice president of sustainability, Wal-Mart Stores

WAL-MART STEPS FORWARD ON SOLAR POWER New alliance with EDF focuses on next-generation technology In 2008, the world’s largest retailer 22 of its sites, another step toward its off when we opened an office by the We’ve jointly issued a challenge to introduced its biggest product ever: ambitious renewable energy goal. company’s Bentonville, AR, headquar- solar suppliers for projects assessing the Sun. Although Environmental Defense ters in 2006 — the only environmental innovative solar technologies at Wal- Wal-Mart began installing solar Fund has worked with Wal-Mart for group to do so. Mart sites around the country. Says panels to generate electricity at up to years, our joint efforts really took Since then, our team has been in our project manager Michelle Harvey: ongoing conversations with Wal-Mart “Our goal is to shorten the time decision makers. required to make the best new solar For solar power, we’re helping Wal- ideas commercially available.” Mart expand beyond conventional rigid EDF is the sole environmental part- panels. These are expensive and prob- ner working with the retailer to accel- lematic in Northern states where many erate the commercialization of more store roofs cannot handle the combined affordable and better solar technology. weight of solar panels and snow. Empowered by Wal-Mart’s scale That got Wal-Mart interested in and commitment to sustainability and next-generation solar cells incorpo- EDF’s expertise in alternative energy, rated into flexible thin films, roofing our partnership stands ready to guide materials or windows. a promising innovation from drawing board to reality. Flexible thin films can convert sunlight into electricity without the disadvantages of heavy solar panels.

LEADING THE WAY IN CORPORATE-NONPROFIT PARTNERSHIPS 2003 2004

Four of the nation’s top Citigroup partners with The first FedEx hybrid EDF president Fred Krupp poultry producers end us to switch all of its electric trucks hit the invites Wal-Mart CEO Lee virtually all antibiotic office operations to road, the product of Scott to the summit of Mt. use in chickens after we recycled paper and EDF’s initiative with Washington to discuss global convince McDonald’s to reduce the paper FedEx and Eaton warming. The meeting leads and others to set strict used by its 130,000 Corporation. A revolu- to a new partnership and new standards for the employees. tion in the delivery ambitious environmental poultry they buy. industry is underway. goals.

6 Environmental Defense Fund is named the #1 environmental group in a recent Financial Times global study of 850 business-nonprofit partnerships

AMERICA’S NEXT GENERATION FEDEX HYBRID ELECTRIC TRUCK OF CHIEF GREEN OFFICERS SPARKS A TRANSFORMATION Who will lead America’s corporations Consistently, the partnerships that Today, the clean truck market into a sustainable future? Environmental Defense Fund builds has grown to 75 fleets including EDF recruited MBA students from with market leaders produce results that Coca-Cola and Purolator. The “Big top business schools and embedded ripple through a whole business sector. Four” truck makers (Freightliner, them at companies like Cisco Systems For example, aiming to transform International, Paccar and Volvo) and Yahoo with the mission of finding the market for the 500,000 fuel-hungry are moving swiftly to meet rising ways to save money through energy midsize trucks that deliver America’s demand for hybrid trucks of all sizes. efficiency. One student, for example, goods, we first sought out an indus- Thirty-seven models are now discovered that Cisco could save try leader, FedEx Express. Together available, with more in the works. $24 million and reduce its carbon with FedEx and Eaton Corporation, The transformation of the midsize footprint dramatically over the next we developed the world’s first com- truck market clearly is underway. five years by installing smart power mercially successful hybrid delivery As FedEx Express president distribution units that automatically truck. It emits 96% less soot and 65% David Bronzek puts it: “The envi- shut down machines not in use. less smog-forming pollution, reduces ronmental and business gains signal As project director Millie Chu Baird greenhouse gas emissions by 33% — a revolution in truck technology and says, “We’re putting the next genera- and goes approximately 50% farther have set a new industry standard – tion of ‘Chief Green Officers’ to work.” on a gallon of fuel, so over time the thanks to Environmental Defense improvements pay for themselves. Fund.” ONLINE: Watch our climate interns at work at edf.org/climatecorps08

2005 2007 2008

Wegmans Food The Advertising We help launch the U.S. Our scientists work with Markets partners Council garners Climate Action Partnership Wal-Mart on a plan to reduce with us to promote over $100 million (USCAP), a coalition of plastic shopping bag waste environmentally sound in donated ad time nonprofit groups and an average of 33% per store seafood through strict and space for our 26 major companies from by 2013, taking 9.4 billion purchasing standards. campaign to fight Alcoa to Xerox, all calling bags out of the environment global warming. on Congress to cap global each year. warming pollution.

7 Our integrated strategy to prevent dangerous climate change combines federal, state and international initiatives. CLIMATE

WHY WE WORK “For the first time, climate and ON CLIMATE energy were important issues in a presidential election. We now have a historic opportunity to get the legislation right, for our climate, our economy and our children.” Steve Cochran National climate campaign director

8 CLIMATE: NATIONAL “We can – and we must – send a signal to the markets and to a waiting world that the era of American inaction on climate is over.” Senator Dick Durbin (D-IL) at an EDF climate briefing attended by more than 30 U.S. senators and representatives

MOMENTUM BUILDS FOR U.S. science and economics. Our analy- alliance we helped launch that calls sis showed that a declining cap on for a national carbon cap. Member ACTION ON GLOBAL WARMING carbon emissions will have negli- companies represent virtually every “I did it for my children.” That’s need to build the infrastructure gible impact on long-term economic sector of the economy and operate in how Florida’s Republican Senator for a new energy economy.” growth, while HEALTH helping to end our oil all 50 states. ECOSYSTEMS OCEANS Mel Martinez described his June In Montana, Senator Baucus addiction. By showing how climate legislation 2008 vote to advance debate on the backed climate action after we With jobs taking center stage, we can help stimulate the economy, we Lieberman-Warner Climate Security persuaded the Montana Grain teamed up with Duke University kept the issue high on the political Act. Martinez was joined by Max Growers Association to support it. to produce case studies of job agenda. Now we will hold President Baucus (D-MT) and nine other And in Martinez’s home state, creation. Many of the brick and Obama and members of Congress to senators who previously had voted we produced scientific research on mortar jobs for new energy their campaign pledges to cap global against a similar measure. Florida’s vulnerability to climate technologies will be in America’s warming pollution. The surge in support, brought change and rising seas. To draw manufacturing heartland, where ONLINE: Read our climate on with help from Environmental attention to solutions, we even hundreds of companies already experts’ blog at climate411.org Defense Fund, set the stage for sponsored the first fishing tourna- are benefiting from the business of passage of a national climate bill ment ever to offset all its global renewable energy and energy ef- U.S. SENATE CLIMATE VOTES in 2009. “The economic downturn warming pollution. In the end, ficiency. For example, wind turbine 100 doesn’t diminish the urgency for Florida senators voted to move the manufacturer Gamesa has retooled 95 climate legislation,” says our national Lieberman-Warner bill forward. a steel plant in Ebensburg, PA, Oppose climate campaign director Steve When special interests mounted creating nearly 1,000 manufactur- 80 Cochran. “Congress is finally debat- a multimillion-dollar campaign to ing jobs. ing the details of legislation and its spread fear about the cost of climate Bolstering our case, 26 Fortune 60 60 Votes 55 needed 54 impact on utility bills and jobs. We action, we countered with sound 500 companies joined USCAP, an to block a filibuster 43 40 38 36 NUMBER OF SENATORS OF NUMBER

20

Support 0 0 1997 2003 2005 2008 Unrelenting pressure by EDF and its allies has brought America to the threshold of climate action.

9 VENTURE CAPITAL INVESTMENT IN CLEAN TECHNOLOGY

3.0

2.5

2.0

1.5 Total U.S. 1.0 Venture capital investment in low- carbon technologies has skyrock- 0.5 eted since passage of the Global INVESTMENT (in billions of dollars) California 0 Warming Solutions Act, with much 2002 20032004 2005 2006 2007 of the investment in California. San Francisco is looking into harnessing the tides under the Golden Gate Bridge to generate electricity.

The plan will alter how utilities WHY WE WORK generate electricity, automakers design IN THE STATES cars and refineries make fuel. Our ex- “The states alone can’t solve global perts have provided technical advice warming, but they are putting and are working with industry and widespread pressure on Washington. academic researchers to devise strict We’re showing how strong climate environmental standards for biofuels. legislation will create jobs.” Our success in California has rein- Jim Marston forced regional initiatives in the West State climate initiatives director and the East to reduce global warm- ing pollution, with the nation’s first auction of emission allowances taking STATES LEAD THE WAY place in 2008. Before California’s pioneering ac- ON CLIMATE ACTION tion, venture capital investment in Far from Washington, DC, in state- To make sure the rules are strong clean technology was drifting over- houses and courthouses across the and effective, we dispatched a team seas. Now, the United States accounts country, states are acting on global of economic and policy experts to for more than 80% of global clean warming, laying the foundation for a Sacramento. “By capping emissions, tech investment, with two-thirds of nationwide low-carbon economy. No California has taken the lead in ad- that in California. Innovations such as state has done more than California. dressing energy security, environmen- low-carbon biofuels, ocean energy and The Golden State made history this tal quality and economic growth,” says plug-in hybrid cars may soon flourish. year when it began implementing its attorney Jim Marston, who spearhead- With the world’s sixth largest econ- Global Warming Solutions Act, which ed our effort. omy, California will also influence the Environmental Defense Fund cospon- California’s plan promotes renewable pivotal 2009 world climate nego- sored and helped draft. The law sets energy, low-carbon fuels, more efficient tiations in Denmark. Says Marston: the nation’s first economy-wide cap on appliances and stricter building stan- “The road to Copenhagen starts in greenhouse gas emissions, requiring a dards. It also authorizes a carbon cap- Sacramento.” 15% cut below current levels by 2020. and-trade program to keep costs low. ONLINE: Get the latest climate news at edf.org/globalwarming08

10 “The clean-tech revolution is using our greatest strength — innovation — to solve CLIMATE: STATES our biggest challenge. Environmental Defense Fund’s bipartisan advocacy is helping to lay the foundation.” John Chambers Chairman and CEO, Cisco Systems

COAL’S DAY OF Building on that success, we negoti- ated with investment banks, includ- RECKONING ing Citigroup, JPMorgan Chase and With roughly half of U.S. electricity Morgan Stanley, to impose new envi- coming from coal, Environmental ronmental standards on financing for HEALTH ECOSYSTEMS OCEANS Defense Fund has set out to make coal coal plants. The standards are shifting cleaner and promote sustainable alter- investor focus away from old-style coal natives. Some 73 proposed coal-fired plants toward an entire range of low- power plants in 31 states have been can- carbon options, including wind, solar celed or delayed in the last two years, and geothermal. thanks in part to our work. In Colorado, our staff and allies worked with Xcel Energy on a plan to close two aging coal plants, expand energy efficiency and add 1,000 mega- TEXAS LENGTHENS ITS LEAD watts of wind and solar power. “Xcel is reducing global warming pollution IN WIND POWER while providing reliable, low-cost en- Amid rusting oil derricks on a wind- The wind industry received another ergy in a fast-growing market,” says our swept mesa in Sweetwater, TX, new boost this year when we helped con- deputy general counsel Vickie Patton. wind turbines whir in the distance. vince state regulators to approve new COAL IN RETREAT The turning point came in 2007 when “I’ve been an oilman all my life,” says power lines to carry West Texas wind In the past two years, 73 coal plants two private equity firms enlisted our have been canceled or delayed across wind investor T. Boone Pickens, “but energy to urban areas. This removed a help in acquiring the Texas utility TXU. the country. EDF is helping utilities meet this is one emergency we can’t drill major bottleneck. To gain our support, the buyers agreed growing electricity needs through cleaner our way out of.” “EDF played a major role in help- technologies and energy efficiency. to scrap plans for eight coal plants and Pickens’s conversion speaks vol- ing the new policy become a reality,” double the company’s investment in umes. Texas has become a world says Mike Sloan, former director of renewable energy and efficiency. leader in wind power, a shift spurred the Wind Coalition. Under the new by the state’s electric restructuring plan, the Lone Star State could more bill that EDF championed back in than triple its wind capacity by 2015. 1999. The law required an increase in renewable energy.

Number of states that have adopted California’s 14 clean car law, which we helped draft and defend

11 Minimum reduction in global greenhouse 50% gas emissions needed by 2050

THE ROAD TO A GLOBAL CLIMATE SOLUTION How we’ll help win a lasting agreement Q: What will it take to get develop- Now allies in Brazil have proposed ing nations to engage? a plan that would award credits in the Our goal is to get these countries to global carbon market to nations that join the global treaty. Credits for pro- reduce deforestation. Our staff helped tecting tropical forests, for example, advance that plan at recent climate can give poor nations an incentive to talks. They and other scientists showed stop deforestation. how reduced deforestation can be veri- Such an approach will help break fied accurately using satellite-based the North-South logjam we’ve had radar sensors. since Kyoto. Of course, until America Carbon credits will give tropical methane-based biodigesters for homes, leads, other nations will not see any forests the value they need to survive. replacing smoky cooking fires with reason to act. Without them, nearly half the Amazon clean gas stoves. Climate program director Peter Goldmark could be gone by 2050. Early steps in this project already explains our strategy to help achieve a Q: Why is protecting rainforests have begun lowering carbon emissions, global agreement at the Copenhagen so important? Q: How can we help both the generating emission credits that help negotiations in December 2009. The burning of tropical forests climate and the world’s poor? offset the project’s cost. Q: Why is fighting global warming causes 20% of global greenhouse gas As the economies of countries like different from other problems? emissions, and previous treaties did India expand, they face a choice Q: Is there a nexus between To solve the global climate crisis, nothing about it. whether to grow with dirty energy energy, economic development all countries must be engaged. Unlike sources or healthier alternatives. and climate? most pollution problems, there can’t To promote the better choice, we Absolutely. The desire for a higher be a U.S. solution without China and have partnered with E+Co, a non- standard of living is part of the human India. We’re in this boat together, row- profit investment group, and Grameen condition. The path toward climate sta- ing against a ticking clock. Bank in Bangladesh. Grameen has bility and the path out of poverty have built a factory there to manufacture to be the same.

ONLINE: Watch more of Peter Goldmark’s interview on the global climate challenge at edf.org/climatestrategy08

12 CLIMATE: INTERNATIONAL

Copenhagen

Washington, D.C.

Small island states Our work in several parts of like Jamaica are China is helping create the drawing attention to foundation for emissions the grave risks they trading markets in the most We have 70 people face from global populous nation on Earth. warming and sea

working in 16 states HEALTH ECOSYSTEMS OCEANS on climate, building level rise. momentum for U.S. action and a global agreement.

Our Bangladesh partnership Allies in Brazil are helping with Grameen Bank is to advance proposals for bringing families cleaner- Reducing Emissions from burning stoves that reduce Deforestation and Forest GLOBAL ACTORS unhealthful air pollution and Degradation (REDD). greenhouse gas emissions. Rainforest nations China India Other developing nations United States European Union Russia Other developed nations From Washington to Copenhagen THE SOLUTION: COLLECTIVE ACTION Greenhouse gas emissions Solving the global climate crisis is the (gigatons of CO2 equivalent per year) Minimum reduction world’s biggest environmental challenge. 50 needed by 2050 Scientists tell us that to stabilize The new administration in Washington the Earth’s atmosphere and avert raises the prospect of prompt U.S. catastrophic climate change, global 40 warming pollution needs to be cut action, creating a fresh context for the 50% or more by 2050. December 2009 international negotiations Deforestation This graph shows one scenario, 30 in Copenhagen. The agreement reached with developed nations reducing China there will replace the Kyoto treaty, which emissions immediately and devel- India oping nations soon afterward. expires in 2012. 20 Other developing nations The talks must account for emissions from deforestation, which were over- United States 10 looked in Kyoto, and engage developed European Union and developing nations alike. That is Russia the only way to achieve the reductions Other developed nations 0 needed by mid-century. 1990 2000 2010 20202030 2040 2050

13 Chinese factories producing 50,000 goods for the U.S. market SPOTLIGHT ON CHINA “I wish to express heartfelt thanks for your contributions to China’s development.” Wen Jiabao Premier, People’s Republic of China

China’s Premier Wen Jiabao (r.) greets our chief economist Daniel Dudek, recipi- ent of the Friendship Award, the highest honor China confers on foreign experts.

ONLINE: See TV news coverage of our China work at edf.org/friendship08

PIONEERING INCENTIVES FOR ENVIRONMENTAL PROTECTION 1991 1999 2001 2003

China’s National We open an office in EDF is named by the In the Yangtze River Environmental Beijing and initiate State Environmental Delta, we help establish Protection pilot projects to cut air Protection Agency the first province-wide Administration invites pollution in the cities to help draft China’s sulfur dioxide emissions us to participate in of Benxi and Nantong. national air pollution trading system. the country’s first regulations for sulfur experiments with dioxide. economic incentives for pollution control.

14 For Fiscal Year 2008, our China work is included in the Climate line of our financial statement. THE VIEW FROM BEIJING “No other U.S. environmental organization has the strong reputation and breadth of experience that Environmental Defense Fund brings to protecting China’s environment. Our team of ten experts in Beijing is proud to be working with such an important organization.” Zhang Jianyu Managing director, China

AS CHINA GOES, to use the purchasing power of global Following recommendations of a retailers like Wal-Mart to improve panel co-chaired by Dudek, Premier SO GOES THE WORLD product safety and make complying Wen Jiabao created the Ministry of China is roaring into the 21st century When a major chemical spill fouled with Chinese environmental laws a Environmental Protection, a cabinet- with the force of a locomotive, its the Songhua River in 2005, the requirement for contracts. Wal-Mart level post. “We’re seeing in China a economy doubling every six years. Chinese government turned to us to alone has 30,000 suppliers in China. revolution in environmental thought,” But the miracle has come at a high help develop an emergency response Working with us, the retailer set a goal says Dudek. “We need to do everything price: fouled air, despoiled rivers and system for environmental accidents. for its top suppliers to cut their energy we can to make it actually happen.” a growing share of the world’s global We then offered recommendations on use 20% by 2012. warming pollution. environmental governance to better Environmental Defense Fund hold polluters accountable. recognized the challenges and op- Now we are helping China tackle portunities early. More than 15 years carbon dioxide. Last year, China ago, we engaged in what our chief became the world’s leading green- economist Dr. Daniel Dudek calls house gas polluter. Working with us, OUR WORK IN CHINA “the world’s biggest environmental the China Beijing Equity Exchange CHINA Air pollution control programs experiment.” We initiated projects us- this year established an environmental Enforcement programs Greenhouse gas reduction ing economic incentives to cut power commodities exchange and a registry projects with farmers plant pollution in several of China’s to track emissions reductions. Green commuting partners cities and provinces. The areas cov- Since much of China’s pollution ered by our programs now encompass comes from factories that export one-third of China’s sulfur dioxide goods, we launched a Green China emissions. Supply Chain Initiative. The goal is

2004 2005 2006 2008

China’s environmental We establish an We work with Following our recom- agency asks EDF to be institute with poor farmers mendation, China its partner in designing Tsinghua University in Xinjiang and strengthens the penal- enforcement mechanisms to train thousands Sichuan provinces ties in its Clean Water to improve compliance of business and to introduce Act, and our green com- with environmental laws. government officials farming practices muting campaign with on economic that reduce global 70 companies helps incentives to protect warming pollution clear the air in Beijing the environment. and slow the and more than 20 other spread of deserts. cities. 15 Number of U.S. fisheries now overfished, 45 including cod and flounder OCEANS

WHY WE WORK “By offering fishermen a financial ON OCEANS stake in the health of fisheries, we can revive coastal communities and bring the resilient oceans back to life. The next president has all the tools he needs to end overfishing in his first term.” David Festa VP West Coast and Oceans

16 “Environmental Defense Fund looks for solutions CLIMATE rather than pointing fingers and placing blame.” Rodney Avila New England fishery council member and decades-long commercial fisherman

‘CATCH SHARES’ GIVE FISHERIES “As the fishery recovers, each catch Brian Mose, a trawl fisherman in share becomes more valuable, giving British Columbia, is hopeful. “Without NEW HOPE FOR THE FUTURE fishermen a long-term financial stake EDF, I don’t think the fishing com- When John Steinbeck wrote Cannery Environmental Defense Fund in the health of the system,” explains munity would have learned about the Row in 1945, California’s coastline offered a different approach. We our Pacific Coast Oceans program science and economics of this great OCEANS was dotted with thriving fishing helped persuade the Pacific Fishery director Johanna Thomas. idea.” communities. Today, the state’s Management Council to approve a To provide fishermen the dollars ONLINE: Watch how a key fishery fishing industry faces hard times, plan to revive groundfish using “catch they need to switch to sustainable fish- was revived at edf.org/catchshares08 with working waterfronts giving way shares.” ing practices, we launched a revolving to T-shirt shops. The commercial Under this system, each trawler is loan program called the California A TALE OF TWO FISHERIES catch has declined 70%, and similar assigned a percentage of the scientifi- Fisheries Fund. The fund also will 175 failures are happening all over the cally determined total allowable an- build markets for higher quality sea- U.S. West Coast world. nual catch. Captains can fish sensibly food products. 150 groundfish The old style of fisheries manage- to maximize the value of their take, Our goal is to make catch shares 125 ment – using tactics like ever-shorter rather than racing to catch fish as the standard cure for ailing U.S. 100 Pacific halibut fishing seasons – has failed to end quickly as possible. That will give fisheries. In the Gulf of Mexico, the 75

overfishing and led to a dangerous them the flexibility to avoid sensitive success of our catch share program HEALTH ECOSYSTEMS ANNUAL CATCH ANNUAL CATCH 50 (in millions of pounds) “race for fish.” Particularly hard hit areas and reduce the accidental killing for red snapper has led to its proposed Halibut 25 catch shares was the West Coast’s largest fish- of other species. The plan, which we expansion to include grouper. Now we introduced 0 ery – the 80 bottom-dwelling species helped develop, also calls for observ- are promoting catch shares for Gulf 1990 92 94 96 982000 02 04 06 collectively known as groundfish. ers on boats, eliminating the guess- shrimp and New England scallops, Catch shares have revived fisheries In 2000, the fishery was declared a work and lack of enforcement that and we’re exploring similar programs like Pacific halibut, while many fisheries without catch shares have collapsed. federal disaster. have long plagued fisheries. with recreational fishermen. A recent study in Science found that “implementation of catch shares halts, and even reverses, the global trend toward widespread collapse.”

17 People worldwide who rely 1billion on seafood for their protein

had partnered with Wegmans super- SEAFOOD AND HEALTH markets to develop the first purchas- “Not all seafood choices are equally ing policy for farmed shrimp. Ninety healthy for people — or the oceans. percent of shrimp is imported, mostly We’re working to educate both from Southeast Asia and Latin America, individuals and corporate seafood where regulations often are lax and buyers to recognize and demand poorly enforced. Since Wegmans ad- the best choices.” opted stricter standards, its shrimp sales Diane Regas have accelerated. Oceans program managing director We’re now working with retailers to strengthen independent certification of seafood, and we’ve expanded our popu- COMING TO YOUR TABLE: lar Seafood Selector, a shopping guide for consumers, to include sushi. The HEALTHIER FARMED SEAFOOD guide shows best and worst choices and Responding to a wave of consumer are typically used to promote growth in highlights health risks from mercury and demand for healthy and sustainable fish. The policy also avoids fish farmed other contaminants. seafood, leading natural foods retailer in wetlands and limits the use of wild fish “By choosing safe and sustainably Whole Foods this year instituted strict as feed. farmed or caught fish,” says Ish, “con- new standards for farmed fish. Since “These are the most comprehensive sumers can eat right and help guarantee roughly half the seafood consumed in aquaculture standards to date for a that the bounty of our oceans is with us the U.S. comes from fish farms, the stan- retailer,” says our seafood program man- forever.” dards could have a huge impact. ager Teresa Ish. “When a leading retailer ONLINE: Find our pocket guide The new guidelines, developed with like Whole Foods makes this kind of to healthy seafood and sushi choices help from Environmental Defense Fund commitment, suppliers take notice.” at edf.org/seafood08 experts, ban the use of preservatives, Whole Foods seafood coordinator antibiotics, hormones and other chemi- Carrie Brownstein credits EDF with cals that can be harmful to humans yet requesting tough criteria. Earlier, we

18 “EDF seizes unique opportunities, such as protecting the sensitive CLIMATE ocean ecosystems in Cuba and the far Pacific Islands, and inspires all parties toward innovative solutions.” Dr. Steve Gaines Director, Marine Science Institute, UC-Santa Barbara OCEANS

Advancing ocean science Cuba: Creating a model for National treasure: Marine with university partners coastal conservation monuments in the Pacific A few years ago, nobody was talking Operating under a special license from The Central Pacific Islands contain the about mining the deep oceans – except the U.S. government, we are helping most pristine shallow-water coral reefs the mining industry. Dr. Rod Fujita Cuban experts lay a legal and policy in the world. Farther west, the Mariana co-authored a paper in Science in 2007 foundation for conservation as the Trench is an ocean canyon so deep it raising concerns that ocean mining island’s tourism and mining industries could hold Mt. Everest.

could become commercialized within expand. Our efforts have led to a net- In 2008, President Bush set into mo- HEALTH ECOSYSTEMS five years, with or without needed pro- work of marine protected areas, safe- tion a plan to protect these two unique tections. That spurred efforts in Papua guarding gems such as the Gardens of habitats as national marine monuments. New Guinea to ensure that attempts the Queen, once Fidel Castro’s favorite We had proposed monument status for to mine deep sea vents do not damage spearfishing spot. the Central Pacific Islands and built key these unique and valuable ecosystems. We also co-authored a handbook political and scientific support for restrict- Fujita’s efforts are part of our Ocean that planners in Cuba are now using to ing fishing and mining. Innovations initiative to advance ensure that coastal development does Together, the reserves will make up ocean science. We’re collaborating not damage mangroves, wetlands and the largest protected area on Earth. They with Princeton, Stanford and UC- other sensitive environments. build on the Northwestern Hawaiian Berkeley on projects such as the future Islands marine monument, which we of ocean energy and an incentive- helped create in 2006. “With Indo- based plan to protect the Arctic Ocean Pacific corals disappearing twice as fast as the climate warms. as tropical rainforests, these protections truly matter,” says EDF Oceans program managing director Diane Regas.

ONLINE: Watch the undersea treasures of the Central Pacific at edf.org/corals08

19 SPOTLIGHT ON LEGISLATIVE ACTION “Strong climate legislation done right will create jobs, not lose them. Making that case will help us win union support.” Eugene Keilin EDF Strategic Partner and financial advisor to labor unions and employee groups

GETTING THE RULES RIGHT 1969 1974 1986 1990

EDF helps pass Our study of Proposition 65, a The Clean Air Act the National Mississippi River landmark consumer incorporates our incentive- Environmental Policy water leads to information law drafted based program to cut acid Act, establishing new passage of the Safe by EDF, passes in rain that was harming provisions to protect Drinking Water Act, California and leads lakes and forests. The law the environment and setting the first many manufacturers reduces sulfur dioxide creating the Council comprehensive to remove toxic pollution faster than on Environmental national health ingredients from expected, at a fraction of Quality. standards for water. products nationwide. the predicted cost.

20 For Fiscal Year 2008, our Legislative Action work is included primarily in the Climate line of our financial statement, as well as in the Health, Ecosystems and Oceans lines. WHY WE WORK “We can’t match the lobbyists dollar ON LEGISLATION for dollar, but high-profile advocacy can cut through their arguments. At the end of the day, strong environ- mental law depends on votes cast by lawmakers.” Wendy Solmssen Sommer VP Environmental Defense Action Fund

ACTION FUND: MAKING OUR TV ads in 28 states to help sway Arnold wavering legislators. Our message: Schwarzenegger VOICE HEARD ON CAPITOL HILL climate action will be a stimulus for (R-CA) Major opponents of global warming intervention helped win the first state- jobs and economic growth. legislation spend $1 million a day lob- wide cap on global warming pollution. “Strategic Partners helped us reach bying on Capitol Hill. But the environ- We played a key role in drafting the labor unions and other key groups,” ment is making itself heard too. bill and were one of two environmen- says our climate expert Melissa Carey. Jon Huntsman, Jr. (R-UT) EDF has long been a powerful voice tal cosponsors, along with NRDC. Our Strategic Partners have been in Washington, and when the need To deliver our message more force- active on other fronts as well. We began to exceed the $1 million annual fully, we have assembled a network brought 50 farmers and ranchers to cap on our lobbying established by of influential supporters, the EDF Washington to urge increased con- tax law, we created a sister group, the Strategic Partners. These allies — servation funding in the Farm Bill. Brian Schweitzer Environmental Defense Action Fund, including local and national civic Our efforts paid off in 2008 when we (D-MT) which is free of spending limits. This and religious leaders, economists helped secure new funding to restore has enabled us to ratchet up our leg- and CEOs — contact legislators per- wetlands, preserve habitat and curb GOVERNORS TO CONGRESS: islative efforts, particularly on climate, sonally and explain our solutions. agricultural runoff. We also succeeded “Do something on climate!” For the and to advocate strong environmental Now, with Congress beginning to in getting environmental advocates first time, a diverse group of governors laws even as the stakes increase. debate climate legislation in earnest, appointed to fishery management appeared in a nonprofit group’s TV ad on global warming. Non-tax-deductible gifts to the our Strategic Partners have quickly councils across the country. Action Fund allow us to target key gained a high profile, helping to bring “The goal is for Strategic Partners ONLINE: See more of our hard- legislators and mount ad campaigns 30 U.S. senators and representatives to become a consistent presence in the hitting ads urging Congress to act on that mention legislation directly. In to hear our views on the need for a na- lives of decision makers,” says Wendy global warming at edf.org/climate08 California, for example, our pivotal tionwide carbon cap. We also placed Sommer, the program’s director.

2002 2004 2006 2008

North Carolina passes We help win clean-car Our efforts strengthen Our broad left-right its Clean Smokestacks legislation in Connecticut the Magnuson-Stevens coalition secures Act, modeled after our and New Jersey to reduce law to help end $4 billion in the Farm plan to require coal- global warming pollution overfishing. The same Bill to help farmers, fired power plants from vehicles. year, we help draft and ranchers and foresters to cut smog-causing pass California’s cap improve conservation emissions 75%. on global warming on their land. pollution.

21 ECOSYSTEMS

WHY WE WORK “Habitat loss on private lands is the ON WILDLIFE greatest threat to clean water and biodiversity. Through incentives, we are making conservation pay for landowners.” Robert Bonnie VP Land Conservation and Wildlife

22 “Safe Harbor is a breath of fresh air — the first LMT OCEANS CLIMATE concerted effort to work with landowners by a national organization I’ve seen.” Kerry Russell Texas rancher

HOW WE MAKE PEACE BETWEEN tionists,” says Russell, “but I believe spectrum — from the American Farm our love for the land makes us natural Bureau to the Sierra Club. LANDOWNERS AND WILDLIFE allies with those wanting to leave a “Farmers, ranchers and forest “Every year we would go out and Before Safe Harbor, landowners positive legacy for future generations.” landowners manage two-thirds of listen for the birds: nothing. This sometimes destroyed valuable habitat Now, conservation-minded land- America’s land, so they are critical to year, suddenly birdsong was every- to avoid federal regulations. Today, owners also can get federal tax relief. protecting wildlife,” says our wildlife where.” That’s how Environmental the owners of more than four mil- A provision we won in the recent attorney Michael Bean. “They deserve Defense Fund ecologist David Wolfe lion acres nationwide are welcoming Farm Bill gives them a tax deduction help for doing the right thing.” described his thrilling encounter endangered species under Safe Harbor for money they spend preserving rare ONLINE: See more of our work with endangered black-capped vireos agreements. Groups ranging from The ecosystems. The measure garnered with landowners at edf.org/eco08 on Kerry Russell’s ranch in central Nature Conservancy to local govern- support from across the political Texas this spring. ment agencies have turned to Safe Russell has worked with us to Harbor as a prime tool to save endan- restore habitat for the tiny songbird gered species. “We’ve learned we can on his 130-acre ranch, which sits just be more effective by being flexible and beyond the reach of Austin sprawl. listening to landowner concerns,” says

He participates in Safe Harbor, our Wolfe. ECOSYSTEMS program that encourages landowners In Texas, dozens of ranchers signed to protect species without incurring on to Safe Harbor and today their ef- additional federal restrictions as a forts are paying off: Vireos are nesting result of their efforts. EDF conceived in restored habitat from which they’ve Safe Harbor and convinced the U.S. been absent for decades. “Many ranch- government to use it broadly. ers may not call themselves conserva- Unlikely birdwatching pair: rancher Kerry Russell with EDF ecologist David Wolfe HEALTH Acres enrolled by landowners in our 4 million wildlife habitat protection programs

23 Acres lost to development and sprawl 5,000 in the United States each day

WHERE WE WORK SAFEGUARDING Landowner projects to protect wildlife River and delta work VITAL HABITATS Farm programs to protect water resources Across the country, Environmental Top-priority areas for restoration work

Defense Fund staff works with farmers, Northeastern ranchers and businesses to protect Forests America’s natural resources. We mobilize financial, technical and Great legal incentives to restore major Lakes Long rivers and deltas, reverse the decline Island South of wildlife habitat and safeguard Shore endangered species. Our work Northern Chesapeake Great Bay provides models of success that can Plains Albermarle lead to better policies nationwide. Sound

ONLINE: Explore an interactive version of this map at edf.org/places08 Southeastern Forests Central Texas

Coastal Louisiana

Southern A CALIFORNIA RIVER RUNS WILD Texas AGAIN The epic journey of Chinook and coho salmon became PROTECTING AMERICA’S SPECIAL easier thanks RIVERS We are working to restore to a restoration river flows and A CLEANER, HEALTHIER plan that EDF native riverbank EXTENDING A WELCOME MAT TO CHESAPEAKE BAY Declining water helped win on habitat that is WILDLIFE In the Southeast, nesting quality has the Trinity River. vital to clean populations of created a vast The cities of Sacramento, Palo Alto and water and endangered dead zone in the Alameda had been blocking the river biodiversity. red-cockaded Chesapeake, restoration in court. With a coalition woodpeck- threatening the We convinced the cities to withdraw of sports groups, water authorities and ers have nation’s largest from the case and helped an Indian ranchers, our Rocky Mountain office rebounded, and most tribe defend the river’s renewal. Now, helped pass a Colorado law that gives thanks to our productive estuary. So we’ve teamed restored spawning beds allow endan- landowners a new reason to conserve Safe Harbor projects with landowners up with 130 farmers managing 30,000 gered salmon to spawn, and increased water. The law encourages owners to who volunteer to aid wildlife on their acres to help them use fertilizer more river flows help their migration to the lease their unused water rights and help property. Nationwide, 63 rare species efficiently and reduce runoff into rivers Pacific Ocean. revive the state’s rivers. are aided by Safe Harbor. and streams emptying into the bay.

24 WHY WE WORK ON “One of our greatest challenges is

RIVERS AND DELTAS to restore the health of America’s OCEANS CLIMATE rivers and coastal deltas in the face of climate change and other stresses. Investing in the vitality of these natural systems is crucial.” Mary Kelly VP Rivers and Deltas

HELP FOR THE GREAT LAKES funneled Katrina’s storm surge into EDF launched the heart of New Orleans. This year, a multi-state ef- after we assembled the evidence and fort to improve water quality persuaded Congress to act, engineers and curb pol- began disassembling the channel and luted runoff to restoring surrounding wetlands. Lake Erie, the “EDF and its partners have been in most biologically productive of the Great the vanguard of this,” says Dr. Donald Lakes. We built on one of America’s most successful conservation programs, Boesch, chair of the Louisiana Coastal the Conservation Reserve Enhancement Area Science Board. Program, and added other innovative We also worked with allies to con- incentives for area farmers who want to vince EPA to block the Yazoo Pumps, preserve clean water and wildlife habitat. an ill-conceived farmland creation LESSONS FROM THE FLOOD scheme that would have destroyed Three years after the punishing lesson year, we made widespread progress. 200,000 acres of protective wetlands in of Hurricane Katrina, New Orleans In Louisiana, EDF helped secure more the lower Mississippi Delta. Messages A WAY TO COEXIST Proving that grazing livestock can coexist with remains open to catastrophic flood- than $100 million of state funding for to EPA from more than 40,000 of our ECOSYSTEMS threatened ing. The summer of 2008 offered a coastal restoration, and we brought supporters helped carry the day. species, we are picture of what the future might hold together oil companies and local Scientists warn that with global partnering with in store: Hurricane-fed storm surges governments to accelerate the large- warming, hurricanes and floods may landowners in devastated coastal communities in scale rebuilding of protective cypress grow in intensity. the Northeast to restore van- Louisiana and Texas. wetlands. “Revitalizing America’s natural ishing wetlands Environmental Defense Fund has Nationwide, half of all wetlands defenses against extreme weather has that are home to America’s smallest long worked to revitalize America’s have been eradicated. No clearer never been more important,” says our turtle, the bog turtle. natural defenses against flooding, symbol of harmful destruction exists VP for Rivers and Deltas Mary Kelly. including wetlands and riverside than the Mississippi River Gulf Outlet, ONLINE: Learn about our work forests that absorb floodwaters. This a little-used shipping channel that with one Louisiana coastal community at edf.org/wetlands08

“Environmental Defense Fund has been a tireless friend to Louisiana HEALTH communities that want to rebuild, helping us with science, policy and

awareness in Washington.” Pam Dashille Director of the Lower Ninth Ward Center for Sustainable Engagement and Development, New Orleans, LA

25 People living in U.S. communities that 125 million fail to meet health-based air standards HEALTH

WHY WE WORK “Pollution and toxic chemicals take a ON HEALTH heavy toll on public health, particularly with children. We’re dedicated to cut- ting smokestack and tailpipe pollution by 80%.” Andy Darrell VP Living Cities

26 “Environmental Defense Fund has played a LMT CASECOSYSTEMS OCEANS CLIMATE pivotal role in highlighting the health risks of diesel pollution.” John Kirkwood Former president, American Lung Association

THE END OF THE LINE FOR Network members — helped win bipar- try representatives on an EPA diesel tisan support for the legislation. advisory panel. But we found allies, DIRTY DIESEL ENGINES The victory complements new EPA demonstrated the health risks of diesel A container ship the length of three much as 11 million new cars. Small rules, which we also helped win in pollution, built support in industry and, football fields docks at the Port of Los particles lodge deep in people’s lungs 2008, that cut soot and smog-forming when necessary, took EPA to court. Angeles, where it unloads sneakers, and have been linked to cancer and pollution from diesel barges, ferries The result? A series of victories DVD players and a giant plume of premature death. and trains. Collectively, the standards cutting pollution from more and more black exhaust. In a major breakthrough, inter- will prevent tens of thousands of types of diesel equipment. Says Scott: While cars have been subjected to national standards adopted in 2008 deaths and hospitalizations each year. “Our children should grow up in a tough pollution limits for more than will cut diesel pollution from new Back in 2000, Scott was often the world where diesel engines no longer 30 years, standards for diesel trucks, oceangoing vessels by 80 to 90%. lone environmentalist among indus- churn out black plumes of smoke.” buses, ships and other diesel engines We played a pivotal role, helping have lagged behind. A decade ago, Congress pass legislation earlier in DRIVING DOWN DIESEL POLLUTION BY NEARLY 90%

Environmental Defense Fund set out the year allowing the United States 350 to reduce the health threat caused to join the international treaty requir- by these under-regulated sources of ing the cleanup. 300 pollution. Our attorney Janea Scott worked Heavy-duty Oceangoing vessels, including cruise closely with EPA, other environmen- 250 trucks and buses (EDF victory in 2001) ships and container ships, are among tal and health advocates and state the worst offenders, emitting huge and port officials to bring the bill 200

amounts of diesel particulates and to the top of the pile in the Senate. SOOT 150 Non-road, smog-forming emissions. Ships in the Concerted outreach by EDF — includ- includes construction Los Angeles Basin alone pollute as ing 9,400 messages from our Action and farm equipment

(in thousands of tons per year) 100 (EDF victory in 2004)

50 Commercial ships and trains (EDF victory in 2008) 0 2001 2005 2010 20152020 2025 2030 HEALTH

27 “EDF brought established expertise to our effort to develop a comprehensive and flexible framework for nanotechnology.” Terry L. Medley Global director of corporate regulatory affairs, DuPont

ENSURING NANOTECH’S SAFETY sunglasses Researchers in Edinburgh, Scotland, ers, all are using it. According to GE, moisturizer recently made a startling discovery. it offers “a ‘standard of care’ for the Certain microscopic “nanotubes” now nanotechnology industry and beyond.” beach toys used in a wide variety of consumer With major companies poised to adopt products may pose health risks similar the framework, Lloyd’s of London is hat to those caused by asbestos. encouraging its members to see that mosquito repellant Touted as a revolution in everything it is used on all the nano projects they sunscreen from energy to medicine, the science insure. of the ultra-small is generating new The precautions we have recom- materials and uses at a furious pace, mended come not a moment too outstripping scientists’ understanding soon. More than 600 consumer prod- of the potential environmental and ucts — from golf balls to sunscreen — watch health risks. For example, a nanoscale already use nanotechnology.

bathing suit substance might be absorbed far more We’re working to improve govern- readily into the skin or might pass ment accountability of nanotech as from the bloodstream into the brain, well. After testimony by our biochem- NANOTECHNOLOGY PRODUCTS ARE ALREADY HERE which larger molecules cannot do. ist Dr. Richard Denison, the U.S. More than 600 consumer items are known to contain nano materials. To address the responsible develop- House of Representatives passed a ment of nanomaterials, Environmental bill that would significantly increase PREVENTIVE MEDICINE Defense Fund and DuPont teamed up federal oversight and ensure that “Imagine being able to predict and in 2005 to develop a practical means the government conducts sufficient avoid the catastrophic downside to assess and reduce the risks. In 2007, research into nano’s risks. of modern ‘miracles’ like PCBs, we jointly released the Nano Risk As Denison says, “This research asbestos and leaded gasoline. Framework, a set of guidelines for is critical to develop new methods For nanotechnology, our work companies that want to commercialize needed to understand how these novel with leading companies gives us nanoscale materials safely. materials interact with biological sys- the chance to get out in front of a Within months, our work has been tems and the environment.” promising new technology and get translated into French, Spanish and it right the first time.” Mandarin Chinese. GE, Lockheed ONLINE: See more on John Balbus, M.D., M.P.H. Martin and Nanostellar, among oth- nanotechnology at edf.org/nano08 Chief health scientist

28 U.S. newborns exposed each year 630,000 ECOSYSTEMS to dangerous levels OCEANS of mercury CLIMATE

To protect children’s health, we worked with the state of Colorado to prove that cutting mercury emissions could be done affordably. Spurred by strong state standards like Colorado’s, more than 90 power plants nationwide are installing advanced mercury con- trols that only recently critics claimed weren’t commercially viable. Leading the way to Court overturns weak rule “States have taken the lead to pro- cleaner hog farms on mercury pollution tect their citizens,” notes our deputy North Carolina’s ten million hogs When EPA announced a flawed policy general counsel Vickie Patton. “Now generate more waste than the entire for curbing mercury pollution, we EPA needs to follow the law and adopt human populations of New York, Los teamed up with Earthjustice to file suit national mercury standards that will Angeles, Chicago and Houston. Waste along with a coalition of doctors, advo- protect every community in America.” lagoons and sprayfields can contami- cacy organizations and states. We then nate aquifers and have been linked to exposed how EPA was strong-arming a host of health problems. states into adopting weaker laws. In a Culminating a decade of work by major win for public health, a federal EDF and a coalition called Frontline appeals court ruled in our favor. Farmers, North Carolina became the The government’s regulation would first state to ban new hog lagoons and have established a cap-and-trade is implementing a cost-share program program for mercury pollution from to help farmers switch to cleaner power plants. We opposed cap and technology that converts waste into trade for mercury because trading fertilizer. We serve on the committee could lead to toxic hot spots. evaluating alternatives. Mercury is a potent neurotoxin that “EDF brought pioneering common builds up in the body and can harm sense to the equation,” says Chuck children’s developing brains. Stokes, a fifth-generation hog farmer.

A transformed hog industry could HEALTH serve as a model for improving large- scale livestock operations nationwide.

29 The work of Environmental Defense Fund is carried out today by more than 380 dedicated staff across the country.

WHO’S WHO SCIENTISTS, ECONOMISTS, PRESIDENT ATTORNEYS AND POLICY Fred Krupp SPECIALISTS EXECUTIVE DIRECTOR AUSTIN Scientist Ramón Alvarez David Yarnold (Ph.D., Univ. of Calif., Berkeley) Energy policy specialist A. Scott EXECUTIVE TEAM Anderson (J.D., Univ. of Texas) Peter Accinno, CFO, Treasurer, VP Finance and Administration Gulf of Mexico senior oceans policy specialist Pamela Baker (M.A., Univ. of Marcia Aronoff, Senior VP Programs Rhode Island) Steven Hamburg, Chief Scientist Chief scientist Steven Hamburg, Regional fisheries project coordinator member of the Executive Team Cynthia Hampton, VP Marketing and Communications Jeffrey Barger (B.S., Univ. of Central Arkansas) Paula Hayes, VP Development Air quality specialist Elena Craft Liza Henshaw, COO (Ph.D., Duke Univ.) Carol Kinzler, Chief of Staff Program financial analyst Tammi Douglas (Park Univ.) Clean energy policy specialist Thomas PROGRAM DIRECTORS Glenn (M.P.A., Texas State Univ., San Robert Bonnie, VP Land Conservation and Wildlife Marcos) Steve Cochran, National Climate Campaign Director Attorney Amy Hardberger (J.D., Texas Tech School of Law) n Andy Darrell, VP Living Cities Project coordinator Alicia Isaac-Cura David Festa, VP West Coast and Oceans (M.B.A., San Francisco State Univ.) Peter Goldmark, Climate and Air Program Director Oceans program coordinator Marcie Conservation science director David Wolfe, Austin Jones (B.A., Univ. of Texas at Austin) Mary Kelly, VP Rivers and Deltas Research and outreach associate Scientist Linda Laack (M.S., Texas C. Ryan Ono (B.S., Univ. of Calif., n Gwen Ruta, VP Corporate Partnerships A&M Univ., Kingsville) Berkeley) Wildlife field associate Michele Gulf region oceans director Heather Amador Lopez (B.S., St. Edward’s Paffe (B.A., Univ. of Texas) ENVIRONMENTAL DEFENSE ACTION FUND Univ.) David Yarnold, President Energy efficiency specialist Kate Texas water project director Laura Robertson (M.A., Johns Hopkins Univ.) Peter Accinno, Treasurer Marbury (M.A.G., Southwest Texas State Univ.) Program financial analyst Kim M. Sharp Steve Cochran, Executive VP (Univ. of Maryland) n State climate initiatives director Jim Wendy Solmssen Sommer, VP Marston (J.D., New York Univ.) Program associate Elaine Smith (B.S., Texas State Univ.) Christine Stackpole, Managing Director Senior conservation project manager David McKinney (B.A., Columbia Conservation science director David Pacific Univ.) Wolfe (M.S., Univ. of Georgia) n Regional directors Renewable energy specialist Colin Meehan (B.A., Univ. of Rochester)

30 LOS ANGELES Energy fellow Erica Fick (B.A., Occidental College) Policy director Jerilyn Lopez Mendoza (J.D., Univ. of Calif., Los Angeles) Senior attorney Janea Scott (J.D., Univ. of Colorado) NEW YORK Living Cities campaign director Mary Barber (B.A., Elmira College) Business Partnerships managing Deputy general counsel Vickie Patton, Boulder director Mark Brownstein (J.D., Univ. of Michigan) High Meadows fellow Edward Burgess (B.A., Princeton Univ.) Chief economist Daniel J. Dudek (Ph.D., Univ. of Calif., Davis) Policy associate Tom Elson (B.A., Bowdoin College) Scientist Timothy Fitzgerald (M.S., Univ. of Hawaii) Program financial analyst Kevin Gorman (M.P.A., Columbia Univ.) Senior economic policy analyst Britt Groosman (Ph.D., Univ. of Ghent)

Scientist Ramón Alvarez, Austin Attorney Janea Scott, Los Angeles Regional director Daniel Grossman, Boulder Program associate Charles A. Hughes (B.A., Bowdoin College) Project manager Teresa Ish (M.S., BENTONVILLE Managing director Victoria Mills (M.A., Univ. of California, Santa Cruz) Johns Hopkins Univ.) Project manager Michelle Mauthe Director of economic policy and Harvey (M.B.A., Duke Univ.) Program financial analyst Robyn analysis Nathaniel Keohane (Ph.D., Scrafford Project manager Andrew Hutson (B.S., SUNY College at Harvard Univ.) Geneseo) (Ph.D., Univ. of North Carolina at Scientist Lisa Moore (Ph.D., Stanford Chapel Hill) New England oceans regional director Univ.) Julie Wormser (M.P.A., Harvard Univ.) BOSTON Oceans business manager Nancy BOULDER Raditz (M.P.A., New York Univ.) Project manager Greg Andeck (M.E.M., General counsel James T. B. Tripp Duke Univ.) Program associate Carly Gilbert (B.A., (LL.B., Yale Univ.) High Meadows fellow Margaret Lake Forest College) Economist Gernot Wagner (Ph.D., Arbuthnot (B.A., Princeton Univ.) n Senior director for rivers and deltas Daniel Grossman (J.D., Univ. of Harvard Univ.) Project manager Andrew Hutson, Bentonville Fishery outreach coordinator Alexandra Scientist James S. Wang (Ph.D., Bauermeister (M.B.A., Brandeis Univ.) Denver) Ann Karpinski Harvard Univ.) Project manager Rachel Beckhardt Outreach coordinator China project coordinator Lei Wang (M.S., Tufts Univ.) (B.S., Univ. of Minnesota) Kevin Lynch (Univ. of British Columbia) Manager Kyle Cahill (M.B.A., Univ. of Attorney (J.D., New York Massachusetts) Univ.) Vickie Patton Conservation incentives regional Deputy general counsel director Bruce Hammond (M.F.S., Yale (J.D., New York Univ.) Univ.) Scientist Jennifer Pitt (M.E.S., Yale High Meadows fellow Jana Holt (B.A., Univ.) Princeton Univ.) Lokey fellow Martha Roberts (M.S., Senior scientist Jake Kritzer (Ph.D., Stanford Univ.) James Cook Univ., Australia) Conservation incentives regional Theodore P. Toombs Fishery outreach coordinator Emilie director (M.S., Litsinger (M.S., Univ. of Washington) Colorado State Univ.) Economic director Nathaniel Keohane, New York Project manager Jason Mathers (M.S., Suffolk Univ.)

31 RALEIGH SACRAMENTO Senior counsel Thomas J. Graff Project manager Denise Choy (M.E.M., Economist Jamie Fine (Ph.D., Univ. of (LL.B., Harvard Univ.) Duke Univ.) California, Berkeley) n Senior director of rivers and deltas Laura Harnish Energy policy specialist Kristen Center for Conservation Incentives (M.L.A., Univ. of Coracini (M.E.M., Duke Univ.) managing director Eric Holst (M.E.M., California, Berkeley) Maria Harris Fisheries policy specialist Eileen W. Duke Univ.) Project analyst (B.S., Dougherty (M.P.A., North Carolina Policy analyst Camille Kustin (M.S., Brown Univ.) State Univ.) Univ. of Michigan) Senior water resource analyst Ann Hayden Scientist Sarah Hagedorn (M.E.M., Attorney Lauren Navarro (J.D., Univ. of (M.E.S.M., Univ. of California, Duke Univ.) California, Davis School of Law) Santa Barbara) Administrative program associate Climate policy analyst Timothy Project manager and loan officer Phoebe Higgins David Kelly (B.A., Univ. of North O’Connor (J.D., Golden Gate Univ.) (M.A., Univ. of California, Santa Cruz) Business partnerships managing Carolina, Greensboro) Air quality project manager Kathryn director Mark Brownstein, New York Kristen Honey Program associate Jill Logeman Phillips (M.P.P., Univ. of California, Lokey fellow (M.A., (M.E.M., Duke Univ.) Los Angeles) Univ. of California, Santa Cruz) Kyle Program associate Marilyn Marsh- California climate initiative director Packard environmental fellow Kearney Robinson (B.S., North Carolina Derek Walker (B.A., College of William (M.B.A., Univ. of California, Central Univ.) and Mary) Berkeley) Conservation incentives regional Senior conservation project manager SAN FRANCISCO Huff McGonigal director William McDow (M.S., M.E.M., (J.D., Northwestern Duke Univ.) Project manager Millie Chu Baird Univ.) Jerry Moxley Senior policy analyst David McNaught (M.S., Stanford Univ.) High Meadows fellow (Ph.D., Univ. of Florida) Geographic information system (B.A., Princeton Univ.) Maggie Ostdahl Southeast regional program manager specialist Peter Black (B.A., Univ. of Fisheries analyst Sam Pearsall (Ph.D., Univ. of Hawaii) Oregon) (Master of Marine Affairs, Univ. of Washington) n Regional director Jane Preyer (M.P.A., Fisheries specialist Kate Bonzon (M.S., Univ. of North Carolina) Stanford Univ.) Chief ocean scientist Douglas Rader, Raleigh Chief ocean scientist Douglas N. Oceans Curriculum Director Joey Rader (Ph.D., Univ. of North Carolina) Brookhart (M.A., Monterey Institute of International Studies) Climate and air policy manager Michael Regan (M.S., George Oceans Enterprise managing director Washington Univ.) Patty Debenham (Ph.D., Univ. of California, Santa Barbara) Senior aquatic ecologist Joseph Rudek (Ph.D., Univ. of North Carolina) Pacific regional oceans director Michael DeLapa (M.B.A., Stanford Southeast oceans regional director Univ.) Daniel J. Whittle (J.D., Univ. of Colorado) Ocean Innovations director Rodney M. Fujita (Ph.D., Boston Univ., Marine Business analyst Kate Wunderlich Biological Laboratory) (M.S., Carnegie Mellon Univ.)

Conservation managing director n Regional directors Regional director Jane Preyer, Raleigh Eric Holst, Sacramento

32 Research and outreach associate Policy specialist Brendan FitzSimons Program associate Clare Kazanski Ashley Rood (B.A., Northern Arizona (M.B.A., George Washington Univ.) (B.A., Carleton College) Univ.) Attorney Karen Florini (J.D., Harvard Project coordinator Holly Lambert Senior water analyst Spreck Univ.) (State University of New York at Albany) Rosekrans (B.A., Univ. of California, Louisiana coastal engineer Angelina National policy director Amanda San Diego) Freeman (Ph.D., Louisiana State Univ.) Leland (M.S., Univ. of Maine) Corporate partnerships managing Conservation incentives regional Economist Ruben Lubowski (Ph.D., director Elizabeth Sturcken (M.P.P., director Susan Friedman (M.S., Johns Harvard Univ.) Harvard Univ.) Hopkins Univ.) High Meadows scientist Oleg Lugovoy Pacific Coast Oceans program Conservation analyst Jason Funk (M.S., (Ph.D., Institute for the Economy in director Johanna Thomas (M.S., Ohio State Univ.) Transition) Univ. of California., Berkeley) Program financial analyst Esmir Ganic Carbon markets specialist Ron Luhur Corporate partnerships program (M.S., George Washington Univ.) (M.P.P., Harvard Univ.) Attorney Karen Florini, Washington manager Elizabeth Trask (M.A., Harvard Univ.) Social scientist Aaron Goldzimer Agricultural policy specialist Britt (M.P.P., Harvard Univ.) Lundgren (M.S., Tufts Univ.) WASHINGTON Senior economist Alexander Golub Special projects director Mark House outreach manager Carol (Ph.D., Russian Academy of Sciences) MacLeod (M.S., M.A., Ohio State Univ.) Andress (B.A., Duke Univ.) Research associate Isabel Grantham Program associate Emily Martin (B.A., Policy analyst Peter Ashcroft (Ph.D., (B.S., Colgate Univ.) Boston Univ.) Carnegie Mellon Univ.) Program associate Geoffrey Gresk Chesapeake Bay project coordinator Health scientist Caroline (Cal) (M.P.H., Johns Hopkins Univ.) Eileen McLellan (Ph.D., Univ. of Baier-Anderson (Ph.D., Univ. of Senior director of rivers and deltas Cambridge) Maryland, Baltimore) Paul Harrison (J.D., Fordham Univ.) Endangered species specialist Chief health scientist John Balbus International climate policy and Margaret McMillan (B.A., Indiana Univ.) (M.D., Univ. of Pennsylvania; M.P.H., negotiations managing director Policy analyst Dean M. Menke (M.S., Johns Hopkins Univ.) Jennifer Haverkamp (J.D., Yale Univ.) Purdue Univ.)

Wildlife chairman Michael J. Bean (J.D., Strategic Partners program managing Policy specialist Kusai Merchant Regional director Laura Harnish, Yale Univ.) director Elizabeth M. Heagy (J.D., (Ph.D., Stanford Univ.) San Francisco Program associate Sara Biscoe (B.A., Temple Univ.) Senior policy manager John Mimikakis Univ. of San Diego) National outreach manager Ayelet (Ph.D., Univ. of Wisconsin) International law climate fellow Hines (B.A., Univ. of Texas at Austin) Managing director Thomas Murray Stanislas de Margerie (Ph.D., Yale Attorney Kristen Hite (J.D., (M.B.A., George Washington Univ.) Univ.) Georgetown University; M.S., Regional Strategic Partners coordinator Biochemist Richard A. Denison (Ph.D., Universidad San Francisco de Quito) Chris Nelson (B.S., Saint Joseph’s Yale Univ.) Agricultural policy director Sara College) Director of Latin American and Hopper (J.D., Univ. of Virginia) Policy associate Preetha Nooyi (B.A., Caribbean program Scott Edwards International finance and development Hamilton College) (M.B.A., Monterey Institute of unit director Korinna Horta (Ph.D., Attorney Courtney Taylor (J.D., Tulane International Studies) Univ. of London) Univ.) Latin America and Caribbean project Coastal Louisiana project coordinator International counsel Annie Petsonk manager Larry Epstein (B.A., Tufts Brian Jackson (B.A., Univ. of Colorado) (J.D., Harvard Law School) Univ.) Ocean Innovations director Rodney Fujita, National field director Bill Petty San Francisco (M.B.A., Univ. of North Carolina)

33 Associate VP Oceans program Program associate Kellyn Eberhardt DEPARTMENTS Diane Regas (J.D., M.S., Univ. of (J.D., Florida Coastal School of Law) ADMINISTRATION California, Berkeley) Florida climate project director Gerald AUSTIN: Phyllis Burns Transportation director Michael Karnas (B.A., Swarthmore College) BOSTON: Meghan Admirand, Carolyn Replogle (M.S.E., Univ. of Fishery outreach coordinator Michelle Green Pennsylvania) Owen (M.S., Indiana Univ.) Attorney Bruce M. Rich (J.D., Univ. of BOULDER: Lissa Kendall HAWAII Pennsylvania) NEW YORK: Beverly Atkins, Timothy Director of sustainable technology Scientist Stephanie Fried (Ph.D., Brothers, Patrick Cioffi, Summer Husain Cornell Univ.) Jackie Roberts (M.B.A., Yale Univ.) RALEIGH: Poonam Aneja, Melody Scott Special project manager Whitney MAINE SACRAMENTO: DeAnna McFall-Greif Robinson (J.D., American Univ.) Climate change policy specialist SAN FRANCISCO: Tanya Egloff, William Attorney Michael Bean, Washington Anthropologist Stephan Schwartzman Melissa Carey (M.P.Aff., Univ. of Texas) Kramer, Erika Revera, Pamela Vivian (Ph.D., Univ. of Chicago) MICHIGAN WASHINGTON: Katoria Bishop, Lewis Geballe fellow Elizabeth Seeger King, Michael Roach (M.B.A., Univ. of Pennsylvania) Senior fellow John DeCicco (Ph.D., Princeton Univ.) DEVELOPMENT Policy analyst Gustavo Silva-Chávez (M.P.P., Maryland School of Public OHIO SENIOR DEVELOPMENT OFFICERS Policy) Keely Henderson Conservation incentives regional , Associate VP Conservation scientist Stacy Small director Karen Chapman (B.S., Miami Anne Lieberman, Associate VP (Ph.D., Univ. of Missouri, Columbia) Univ.) Edward Mohylowski, Director of Strategic Partners executive director Institutional Giving OREGON Wendy Solmssen Sommer (M.Ed., Nicholas R. Pitaro, Director of Planned Fisheries policy coordinator Shems Stanford Univ.) Giving Jud (J.D., Lewis and Clark Law School) National climate campaign managing AUSTIN: Clare Hudspeth, Barbara Senior economist W. R. Zach Willey director Christine M. Stackpole McCullough (M.P.P., Harvard Univ.) (Ph.D., Univ. of California, Berkeley) International counsel Annie Petsonk, Washington BOULDER: Whitney Self Legislative director Elizabeth INDIA Thompson (LL.M., New York Univ.) NEW YORK: Jan Brennan, Keecha India project director Richie Ahuja Gardner, Lisa P. Keith, Murph Levin, Project manager Bryan Weigle (M.I.M., Garvin School of International Amanda Lichtenberg, Ilana Lester (M. Phil., Trinity College Dublin) Management) Moreno, Roger F. Pasquier, Judy Stoeven Davies, Stacy Zito FIELD STAFF BEIJING RALEIGH: Emerson Beyer, Beth Gettys Sturkey CONNECTICUT Zhang Jianyu, Managing director SAN FRANCISCO: Brent Burns, New England fisheries policy director Employed through CANGO: Chai Sally McGee (M.M.A., Univ. of Rhode Joy Carrigan, Jake DeMoe, Lisa Chunyan, Chang Aishu, Cui Xiujia, Qin Domitrovich, Delia Hitz, Stacie Sears Island) Hu, Sun Fang, Wang Hao, Wei Yuan, Yuan Yi, Zhang Lingge DEVELOPMENT STAFF FLORIDA AUSTIN: Robin Hinton Coral specialist Cara Cooper (M.A., BOULDER: Meghan French Rosenstiel School of Marine and Climate campaign managing director Atmospheric Science) Christine Stackpole, Washington

34 NEW YORK: Caroline Amato, Daryl MARKETING AND Cannon, Emily Chuk, Valérie Ethier, COMMUNICATIONS Evan Namerow, Scott Porter, Ann AUSTIN: Jennifer Lopez Seligman, Sherry Smith, Ann Snider, Chris Weikel NEW YORK: Christina Baute, Sheryl Canter, Janice Caswell, Allison Cobb, SAN FRANCISCO: Sarah Gaddis, Tessa Jennifer Coleman, Tim Connor, Amy McCusker, Demetra Sakkis, Jaime Egner, Rod Griffin, Miriam Horn, Siembieda Peter Klebnikov, Joel Plagenz, Leslie EXECUTIVE OFFICE Valentine, Lucrezia Vassallo ADMINISTRATION SAN FRANCISCO: Mathew Grimm, NEW YORK: Mandy Beisel, Deborah Daniel McKenzie Friant, Laurel Lee, Carol Toebe, Fior WASHINGTON: David Acup, Jennifer Project manager Kathryn Phillips, Sacramento Mejia Andreassen, Margaret Bond, William Special projects director Mark MacLeod, Bond, Tracey Goetchius, Lauren Guite, Washington FINANCE Kim Johnson, Sharon Kasper, Tom NEW YORK: Josefina Encinas, Grisalina Lalley, Tesia Love, Kira Marchenese, Galan, Denise Laughman, Luis Mateus, Charles Miller, Erin O’Sullivan, Samuel Clair Menzies, Joseph O’Brien, Carmen Parry, Susan Richardson, Stuart Ross, Ortiz, Talib A. Saleem, Vladimer Shelia, Heather Shelby, John Stith, Beth Nathaniel Yap, Jeff Zanghi Weaver, Bryan Williams RALEIGH: Debby Fuentes PROGRAM ASSISTANTS HUMAN RESOURCES AUSTIN: Beatriz Perez, Lisa Sibblies NEW YORK: Flip Bernard, Nathaniel BOSTON: Jocelyn Climent, Daphne Fuchs, Corey Lewis, Diane Mills- Medina, Melissa Moore Johnson, Stwarth Suarez, Ruth Tabakin BOULDER: Elizabeth Fowler WASHINGTON: Cheryl Pickard NEW YORK: Stephanie Mandell, Diahan Walker-Sealy Sustainable technology director INFORMATION SYSTEMS Oceans policy specialist Pamela Baker, Austin RALEIGH: Laurin Massengale Jackie Roberts, Washington NEW YORK: Ian Ali, Brian Attas, Daniel Bello, Michele Chivu, Lisa Daniel, SACRAMENTO: John Motsinger Paulette Donadelle, Rori Gitlin, Bernard SAN FRANCISCO: Lesley Lammers, Hair, Julia Haley, Kristen Holbrook, Arisha Williams, Andy Wunder Dane Horton, Jeff Manwaring, Scott WASHINGTON: Michael Hughes, Liberty Nash, Neil Rivera, Shira Ronis, Andrew Jack, Lillias MacIntyre, Elizabeth Skree Thielen, Elizabeth Trout, Sreedhar Vuppala, Sandra Whitfield, John Wong PROGRAM COMMUNICATIONS SAN FRANCISCO: Doug Fisher AUSTIN: Chris Smith, Laura Williamson WASHINGTON: Ermias Alemu, John RALEIGH: Georgette Shepherd Atiles, Anil Jain SAN FRANCISCO: Jesus Mena, Jennifer Witherspoon WASHINGTON: Katherine Burnham, Daniel Cronin, Sean Crowley, Emily Project director Richie Ahuja, India Diamond-Falk, Keith Gaby, Julie Stofer, Policy manager John Mimikakis, Washington Melanie Janin, Anthony Kreindler, Sharyn Stein

35 FINANCIAL COMMENTARY Environmental Defense Fund contin- of the total. Bequests of $3.6 million and health. Of the total, 7% was for This statement represents the consoli- ued to maintain a strong financial posi- accounted for 3% of the total, govern- management and administration, 10% dated activities of Environmental Defense Fund, Incorporated, Environmental tion in the fiscal year ended September ment and other grants provided 3% went toward the fundraising needed to Defense Action Fund and the California 30, 2008, thanks to the generosity and investment income and other rev- generate current income and support Fisheries Fund, Inc. Copies of the com- and support of our more than 500,000 enue accounted for the remaining 2%, for future years, and 1% was spent on plete, audited financial statements from members, trustees, major donors, for a total of $134.9 million in operat- the acquisition of new members. which this information is summarized are available upon request. foundations and other contributors. ing support and revenue for 2008 and Total program and supporting services future years. NON-OPERATING ACTIVITIES expenditures for fiscal 2008 reached Multiyear gifts and pledges play an We began a new initiative for fund- $100.9 million, a 37% increase over important role in enabling us to ex- ing conservation loans through the the previous year. pand and sustain our work. Our fund- California Fisheries Fund. Overall raising efforts for fiscal 2008 increased investment performance during fiscal OPERATING SUPPORT the amount available for future years 2008 was negative. AND REVENUE by $27.9 million. A record level of operating support NET ASSETS and revenue was contributed during EXPENSES Thanks mainly to gifts designated for fiscal 2008 for use in that and future Program services expenditures of future periods, total net assets grew years. Contributions and membership $82.6 million accounted for 82% of $20.5 million to $131.2 million during revenue increased to $69.1 million, rep- total operating expenses in fiscal 2008, the fiscal year. resenting 51% of the total. Foundation with almost all devoted to our priority grants totaled $56.0 million, or 41% areas — climate, oceans, ecosystems

TOTAL PROGRAM AND SOURCES OF OPERATING SUPPORT EXPENSES SUPPORTING SERVICES EXPENDITURES AND REVENUE In millions of dollars Program services 82% 100.9 Contributions and membership 51% Development 8% Foundation grants 60.2 41% Management and general 7% 47.7 Bequests 41.3 3% 32.2 Membership 2% Government and other grants 3% New member acquisition 1% Investment and other revenue 2000 2002 2004 2006 2008 2%

36 STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30 UNRESTRICTED RESTRICTED TOTAL 2008 TOTAL 2007 OPERATING SUPPORT AND REVENUE Support: Contributions $4,194,993 $52,228,226 $56,423,219 $52,896,482 Membership 10,000,115 2,725,095 12,725,210 12,275,640 Foundation grants 28,310 56,017,656 56,045,966 19,847,892 Bequests 3,527,751 85,692 3,613,443 5,344,726 Government and other grants 85,276 3,336,030 3,421,306 1,252,257 Total support 17,836,445 114,392,699 132,229,144 91,616,997 Revenue: Investment income allocated for operations 1,733,805 38,651 1,772,456 1,710,237 Fees, royalties and other income 927,304 137 927,441 893,976 Total revenue 2,661,109 38,788 2,699,897 2,604,213 Net assets released from restrictions 86,577,986 (86,577,986) - - Total support and revenue 107,075,540 27,853,501 134,929,041 94,221,210 EXPENSES Program services: Climate 41,550,351 - 41,550,351 25,693,716 Oceans 12,689,958 - 12,689,958 8,711,223 Ecosystems 14,900,955 - 14,900,955 13,375,149 Health 8,088,066 - 8,088,066 5,967,088 Education 4,815,378 - 4,815,378 4,611,599 Membership activities 546,026 - 546,026 920,798 Total program services 82,590,734 - 82,590,734 59,279,573 Supporting services: Management and general 6,810,239 - 6,810,239 4,552,301 New member acquisition 649,996 - 649,996 772,269 Fundraising: Membership 2,597,017 - 2,597,017 2,320,048 Development 8,214,864 - 8,214,864 6,882,381 Total supporting services 18,272,116 - 18,272,116 14,526,999 Total operating expenses 100,862,850 - 100,862,850 73,806,572 NON-OPERATING ACTIVITIES Transfer to California Fisheries Loan Fund (4,550,000) - (4,550,000) - Other expenses, net of contributions and other income (1,099,007) 16,309 (1,082,698) 618,001 Investment results, net of allocation to operations (7,298,015) (592,967) (7,890,982) 4,048,963 Total non-operating (12,947,022) (576,658) (13,523,680) 4,666,964 NET ASSETS Total change in net assets []including gifts designated for future years (6,734,332) 27,276,843 20,542,511 25,081,602 Net assets, beginning of year 44,951,268 65,719,588 110,670,856 85,589,254 Net assets, end of year $38,216,936 $92,996,431 $131,213,367 $110,670,856

37 BOARD OF TRUSTEES N. J. Nicholas, Jr. W. Michael Brown Charles J. Hamilton, Jr. Julian H. Robertson, Jr. Chairman Independent business consultant and Partner, Paul, Hastings, Janofsky & Founder and Chairman, Investor investor Walker LLP Tiger Management, LLC Carl Ferenbach Norman L. Christensen, Jr., Ph.D. The Honorable Thomas H. Kean E. John Rosenwald, Jr. Chairman elect Professor of Ecology, Nicholas School Chairman, Vice Chair Emeritus, JPMorgan Managing Director, of the Environment and Earth Sciences, Robert Wood Johnson Foundation David J. Roux Berkshire Partners LLC Duke University Arthur Kern Co-Chief Executive, Silver Lake Jane Lubchenco, Ph.D. Lewis B. Cullman Investor Peggy M. Shepard Vice Chairman Chairman Emeritus, Sarah Liao Sau-tung, Ph.D. Co-founder and Executive Director, Wayne & Gladys Valley Professor Chess-in-the-Schools Former Secretary for the Environment, WE ACT for Environmental Justice of Marine Biology, Ann Doerr Transport and Works, Oregon State University Douglas W. Shorenstein Philanthropist Hong Kong SAR Government Chair and CEO, Robert W. Wilson Stanley Druckenmiller Frank Loy Shorenstein Properties, LLC Vice Chairman Chairman and CEO, Former Under Secretary of State Sam R. Walton Investor Duquesne Capital Management for Global Affairs n President, Restoration Works, LLC Arthur P. Cooley Roger Enrico Susan Mandel Secretary John H. T. Wilson Chairman, DreamWorks Animation, Community Advocate Advisory Director, Morgan Stanley Expedition leader and naturalist, SKG; former Chairman and CEO, Lindblad Expeditions David O’Connor Paul Junger Witt PepsiCo, Inc. Managing Partner, G. Leonard Baker, Jr. Partner, Witt Thomas Productions Kirsten J. Feldman Creative Artists Agency Managing Director, Sutter Hill Ventures Advisory Director, Morgan Stanley Joanne Woodward Signe Ostby Artistic Director, Rod A. Beckstrom Jeanne Donovan Fisher Advisor, Center for Brand and Westport Country Playhouse Chairman and Chief Catalyst, True Love Productions Product Management, University of TWIKI.NET, Inc. n Charles F. Wurster, Ph.D. Lynn R. Goldman, M.D., M.P.H. Wisconsin at Madison; Director, The Professor Emeritus of Environmental James W. B. Benkard Pediatrician; Professor, Johns Hopkins Intuit Scholarship Foundation Senior Counsel, Davis Polk & Wardwell Sciences, Marine Sciences Research University Bloomberg School of Public Stephen W. Pacala, Ph.D. Center, State University of New York at Sally G. Bingham, M.Div. Health Petrie Professor of Ecology and Stony Brook President, The Regeneration Project R. Jeremy Grantham Evolutionary Biology; Director of the Shelby W. Bonnie Chairman, Grantham Foundation for Princeton Environmental Institute, HONORARY TRUSTEES Co-founder, CNET Networks the Protection of the Environment; Princeton University Roland C. Clement William K. Bowes, Jr. Chairman, GMO Robert M. Perkowitz Gene E. Likens, Ph.D. U.S. Venture Partners Managing Partner, VivaTerra LLC; George G. Montgomery, Jr. President, ecoAmerica n George M. Woodwell, Ph.D.

n Founding Trustees

38 ADVISORY COUNCILS ACTION FUND AND REGIONAL BOARDS ENVIRONMENTAL DEFENSE ACTION FUND BOARD OF TRUSTEES ADVISORY TRUSTEES Gilman Ordway Nancy Alderman George D. Phipps Brian Conboy Jeanne Donovan Fisher Christopher A. Pilaro Co-chair True Love Productions Karen M. Barnes Wendy Benchley Samuel Reeves Partner, Willkie Farr & Gallagher Robert E. Grady Tom Castro John Sall Jeffrey P. Williams Managing Director, The Carlyle Group Jessica Catto Roger W. Sant Mimi Cecil Lynn Stern Co-chair Charles J. Hamilton, Jr. David G. Crane Barbra Streisand President, Jeffrey Williams and Co. Partner, Paul, Hastings, John Curry NORTH CAROLINA Lewis B. Cullman Janofsky & Walker LLP Christopher J. Elliman Simon B. Rich, Jr., Chair Honorary Co-chair Jane Geniesse Frank Loy Wade Barber Robert E. Grady Chairman Emeritus, Former Under Secretary of State for Mimi Cecil, Chair Emeritus Pricey Taylor Harrison Chess-in-the-Schools Global Affairs Julius Chambers Norbert S. Hill, Jr. W. Robert Connor, Ph.D. Lewis S. Ranieri Freeborn G. Jewett, Jr. N. J. Nicholas, Jr. Thomas E. Cox, Jr. Honorary Co-chair Lewis B. Kaden Investor John S. Curry Chairman and Chief Executive Officer, Gretchen Long Thomas F. Darden Ranieri & Co., Inc. H. C. Niehoff Susan Manilow John Garrou Of Counsel, Peck, Shaffer & Williams LLC Harold A. Mooney, Ph.D. Wendy Abrams Clay Grubb Bunny Murray Douglas W. Shorenstein Pricey Taylor Harrison Principal, Medline Industries, Inc. Robert W. Musser Chair and CEO, Mary L. Hill William A. Newsom James W. B. Benkard Shorenstein Properties, LLC Marian Johnson-Thompson, Ph.D. Lewis S. Ranieri Senior Counsel, Davis Polk & Wardwell David M. Jones, D.V.M. Adele Smith Simmons Adele Smith Simmons Thomas W. Lambeth Thomas F. Darden Farwell Smith Vice Chair, Chicago Metropolis 2020; R. Bruce Lawrence CEO, Cherokee Investment Partners Richard B. Stewart President, Global Philanthropy Robert M. Perkowitz W. Richard West, Jr. Stanley Druckenmiller Partnership Thomas F. Taft Blaikie Worth Chairman and CEO, Timothy P. Toben John H. T. Wilson Joy B. Zedler, Ph.D. Cindy Lee Van Dover, Ph.D. Duquesne Capital Management Advisory Director, Morgan Stanley Kirsten J. Feldman NATIONAL COUNCIL TEXAS Paul Junger Witt Frank Loy, Chair Advisory Director, Morgan Stanley B. Henry Estess, Jr., M.D., Chair Partner, Witt Thomas Productions Wendy Abrams W. Douglas Ankenman, Jr. Jesse Fink Robert L. Bachner Joanne Witty Al Armendáriz, Ph.D. Jim Bildner Managing Director, Director, Brooklyn Bridge Park John S. Broude Sally Lyons Brown MissionPoint Capital Partners Romelia Favrot Development Corporation Michael Browne Jeffrey Fearon, M.D. Gilbert Butler James D. Finley Brook H. Byers John C. Kerr Douglas Campbell, Jr. David C. Lake Ann Colley Thomas G. Mason Susan J. Dawson Commissioner Jay Millikin Susan Ford Dorsey Nancy Powell Moore D. Wilson Ervin Bonnie A. New, M.D. Jay Faison Ann Newman Jesse M. Fink Gilberto Ocañas Irvine D. Flinn Robert Petersen Gordon T. Geballe John Pouland Tim Gomes Robin Rather Alison Holtzschue Susan Reese Al Jubitz Geronimo M. Rodriguez, Jr. Barbara Kingsolver Josephine P. Smith Sidney R. Knafel David Todd Roger Liddell Sue Wagley George A. Miller Mary Wallace 39 FORM OF BEQUEST OUR DONOR ADVISED HOW TO DONATE A gift from your estate to FUND Environmental Defense Fund Environmental Defense Fund A cost-effective, flexible way to is a not-for-profit organization manage all your philanthropy that relies on your support. 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