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Two SRI firms launch shareholder action with Petrocan
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Ethical Funds Inc. and Real Assets Investment Management have filed a shareholder proposal with Petro-Canada calling on the company to disclose greenhouse gas risks and to reduce those risks through trading mechanisms and renewable energy. The resolution is the first of what is expected to be many shareholder proposals filed with Canadian oil and gas companies on greenhouse gas-related issues. “While Petro-Canada has taken progressive steps to reduce greenhouse gas emissions and invest in alternative energy sources, company officials have, in recent months, made alarming statements about the impact of Kyoto Protocol ratification,” said Robert Walker, Vice President, SRI Policy & Research at Ethical Funds Inc. “But in its 2002 disclosure documents, we see little in the way of a discussion of Kyoto and no detailed, rigorous assessments of how the company is positioning itself with regard to reducing greenhouse gas emissions. Regardless of the fate of Kyoto, Petro-Canada needs an action plan for a carbon-constrained future.” "Petro-Canada is sending a very confusing message to investors," said Deb Abbey, CEO and Portfolio Manager at Real Assets Investment Management, "On the one hand they've taken impressive steps to reduce greenhouse gas emissions. On the other hand they're telling us they can't cope with the impact of the Kyoto Protocol. Would the real Petro-Canada please stand up?" The resolution was announced in a news release Dec. 12. In the release, Ethical Funds said the resolution would put pressure on the federal government to vote its shares appropriately on this matter. “The Government of Canada holds nearly 20% of Petro-Canada shares,” said Walker. “This puts Ottawa in the drivers’ seat on this resolution. It will be interesting to see if the Government will assume its responsibilities as an investor and act in a manner that’s good for shareholders, good for the environment, and consistent with its own position on climate change.” Ethical Funds and Real Assets said they are filing similar resolutions with other major Canadian oil and gas companies. For more information, visit www.ethicalfunds.com or www.realassets.ca
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