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Canadian banks targeted by shareholder advocates
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Socially responsible shareholder advocates are calling on the the big five Canadian banks to disclose their social, ethical and environmental risks. On Nov. 6, Real Assets Investment Management Inc. announced it has filed shareholder resolutions with Royal Bank, Bank of Montreal, Bank of Nova Scotia, Toronto Dominion Bank and the Canadian Imperial Bank of Commerce to report on how social, environmental, and ethical issues impact their business and what they're doing to manage these risks. Ethical Funds Inc. is joining Real Assets in filing the resolutions. "Canadians don't trust the banks," said Real Assets CEO Deb Abbey. "Better disclosure builds confidence." Real Assets said that Canadian banks are exposed to a number of social, environmental and ethical risks, including accusations of predatory lending and other unethical practices against some of their US subsidiaries. The company also pointed to involvement in the collapse of Enron and WorldCom. The company also pointed out that international banks that lent money to the South African government during the Apartheid years have been sued in U.S. courts for allegedly violating international human rights law. Real Assets said that acknowledging these kinds of risks would help banks manage potential liabilities and enhance their reputations. "The question we're asked most often is why we own the banks when their biggest clients may be companies that we would consider liabilities in our portfolios," said Abbey. "When we know more about how they conduct their business, we'll feel more confident answering that question." For more information, visit www.realassets.ca.
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