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Enbridge to adopt human rights standards in Colombia following shareholder pressure
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Real Assets Investment Management Inc. and Meritas Mutual Funds have withdrawn a shareholder resolution calling on Enbridge Inc. to adopt measures to avoid complicity in human rights abuses in Colombia. The company said it will adopt a set of voluntary standards on human rights and will discuss implementation of the standards with interested shareholders. The two socially responsible investment firms had co-filed the proposal for inclusion in Enbridge's annual proxy circular later this year. The proposal was the first involving social responsibility issues to be filed under the recently revised Canada Business Corporations Act. "As investors, we were very concerned about potential human rights risks arising from Enbridge's operations in Colombia," explains Deb Abbey, Portfolio Manager and CEO of Real Assets and co-author of The 50 Best Ethical Stocks for Canadians. "We were especially concerned that security providers for the company might be associated with the Colombian paramilitaries." "Companies operating in zones of conflict need to be very careful to avoid even the appearance of complicity in human rights abuses," said Gary Hawton, CEO of Meritas Mutual Funds. "They need strong human rights policies and procedures in place and effective management systems to ensure that their local partners - especially their security providers - do not violate human rights. The risk to shareholder value is very real." "This outcome is win-win," said Dave Mowat, CEO of VanCity Credit Union, majority owner of Real Assets. "Enbridge wins because capital markets today will have greater confidence in management's ability to handle human rights issues when operating in zones of conflict, and the people of Colombia win because foreign investors are looking very seriously at human rights." Enbridge is one of the largest energy companies in North America. The Canadian-based company operates the world’s longest crude oil and gas pipeline system, and provides natural gas to 1.5 million customers in Ontario, Quebec, and New York State. Enbridge owns 25 per cent of Oleoducto Central SA (OCENSA), Colombia's most important oil pipeline. Colombia is home to the worst civil conflict in the Western Hemisphere. About 40,000 people have died in the war in Colombia, mostly at the hand of paramilitaries, and many trade unionists have been killed or disappeared. In addition to Enbridge, three other major Canadian oil and gas companies operate in Colombia - Talisman, AEC, and Nexen. For more information, visit Human Rights Watch www.hrw.org
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