Monsanto is the world's largest producer of GE seeds and has become synonymous with genetic engineering. Shareholders are very concerned about potential health and environmental impacts and financial liability from products that may be prematurely rushed to market.

AYS has been actively engaged in dialogue with Monsanto since 2004. In 2005 AYS joined a dozen Catholic institutional investors in co-filing a resolution asking the company to report on the impacts of GE seeds and evidence of independent long-term safety testing demonstrating that GE crops, organisms, or products thereof are actually safe for humans, animals, and the environment.

AYS also commissioned the most detailed financial analysis of this issue and released the report "Monsanto and Genetic Engineering: Risk for Investors." AYS conducted extensive outreach to mainstream investors regarding this report and the shareholder resolution. The report found:

Significant Risks to Financial Performance Remain Un-examined in Monsanto's Business Plan and are not properly reflected in current stock market valuations:

• Potential costs of "adventitious presence", or contamination of conventional seed with biotechnology traits, is not delineated properly for investors by management.
• Lack of regulatory oversight is not acknowledged as a business risk since liability remains with Monsanto once GE crops are commercialized
• Regular appearance of "Extraordinary Charges" on the balance sheet as a result of environmental litigation costs and restructuring charges imply that such costs will likely continue to be burdensome.
• Ambitious profit targets do not reflect political and economic realities facing GE crops with respect to consumer acceptance and commercialization.
• Reliance on litigation to "capture value" and fend off competitors is not fully acknowledged in the business plan, or accounted for in SEC filings.
• Traditional chemical company risks remain a burden despite the shift to Ag biotech.

An ongoing dialogue with the company has focused on specific products including Plant Made Pharmaceuticals (PMP's), wheat, canola and turf-grass; seed integrity; and impacts on developing countries. The shareholders were one pressure point among many that helped convince Monsanto to:

• abandon plans to develop GE wheat and
• abandon plans to develop Plant Made Pharmaceuticals

AYS and its ICCR shareholder partners co-filed a 2006 resolution asking the company to report on its policies, practices and business rational regarding political contributions.