2004: How does Berkshire ensure it does not harm the environment?

AUDIENCE MEMBER: Hello, my name is Dan Cunningham, and I’m from Boston, Massachusetts, home of the 2004 world champion Boston Red Sox. (Applause and laughter)

Thank you, Warren and Charlie, for providing this forum, and teaching over the years. It’s much appreciated.

In a recent New York Times magazine cover story titled, “Up in Smoke,” David Sokol, who runs Berkshire’s MidAmerican Energy business was cited as a prominent CEO actively working to roll back the United States Clean Air Act, which 80 percent of Americans view as crucial to our public health.

MidAmerican, itself, was cited as a major mercury polluter, among other things.

With this in mind, could you see a role for a type of independent oversight committee charged with the purpose of auditing for shareholders the social responsibility of Berkshire’s businesses?

This committee would monitor costs that Berkshire’s businesses incur for our society, but do not show up anywhere in an income statement. Maybe in Berkshire’s case, this would be a fraction of a person instead of a committee. Thank you.

WARREN BUFFETT: Yeah. Is Dave here? I can’t, it’s hard for me to see here. Do you see Dave? Marc [Hamburg], is David here?

We’ll go to a — yeah, he might —

I’d like to have David respond to that, because, you know, I have seen MidAmerican actually lauded in many — a great many respects.

I did not see that particular article, but I know that if there were anything being done, that had been judged wrong, I would have heard about it. So maybe David can address that, if he will.

Well, he can — there’s a mic. Either come up here, or go to the microphone that’s nearest.

DAVID SOKOL: Yeah, Warren, this is David.

WARREN BUFFETT: Yeah, OK, uh-huh.

DAVID SOKOL: The article actually does not criticize MidAmerican for any air emissions. It criticized me for two years ago being a “Ranger” in President [George W.] Bush’s election.

For what it’s worth, I’m no longer a Ranger, but that was the — the focus of the article was energy CEOs trying to influence legislation.

That’s not why I was a Ranger, and frankly, MidAmerican’s environmental policies, I think, rank among the best in the industry.

WARREN BUFFETT: Thanks, David. Yeah, I’ve never seen any criticism of MidAmerican. And matter of fact — (applause) — David, could you tell them what happened with that J.D. Edwards [J.D. Power] study just recently?

DAVID SOKOL: Yeah, we were ranked nationally number two in the country for environmental reliability, availability, and customer satisfaction — number one in the Midwest out of 55 utility companies.

WARREN BUFFETT: Thanks, Dave. (Applause)