Socially responsible investors files 25 shareholder proposals on social responsibility and sustainability issues in 2005, more than double the number a year earlier.

A review of data published by the Shareholder Association for Research and Education (SHARE) shows that there were 25 proposals on social responsibility and sustainability, filed for the 2005 proxy season, compared 11 such resolutions in 2004.  The growth in the number of socially responsible shareholder proposals in Canada is an indicator that the SRI community is becoming familiar with the process since legislative changes in 2002 eliminated barriers to socially responsible shareholder proposals and shareholder communications.

The shareholder proposals include a variety of resolutions on human rights and climate change issues at the banks and large oil and gas companies.  In some cases, investors withdrew the proposals after making progress with company management.

For example, in December 2004, The Ethical Funds Company filed a shareholder proposal with Petro- Canada, asking the company to report to shareholders on implementation of its human rights policy.  The proposal noted that Petro-Canada's operations in Algeria, Libya, Syria and Tunisia-all countries identified as violating basic human rights-placed the company's reputation at risk.

Ethical Funds asked for full implementation of a human rights policy, which would include specification of board and senior management responsibilities, allocation of staff resources, training, integration of policy implementation into compensation, monitoring mechanisms, and reporting.

In February, The Ethical Funds Company agreed to withdraw the proposal after Petro-Canada agreed to implement a formal procedure on security forces, a report on human rights management implementation and meet to review progress.

In its regular newsletter to unitholders, Ethical Funds stated the new policies "will place the company in a global leadership position."

In another example, Real Assets Investment filed resolutions with CIBC, Royal Bank and Bank of Nova Scotia asking for a report on efforts to reduce risks of climate change.  The company withdrew the resolutions at CIBC and Real Assets.

In its Winter 2005 newsletter, Real Assets stated: "The response has been surprisingly varied: Royal Bank of Canada demonstrated a high level of understanding of the issue and a strong commitment to climate disclosure.  CIBC agreed to assess the business implications and risks of climate change.  But, Scotiabank has yet to make a definitive commitment on climate change."

The Scotiabank resolution went ahead to its annual meeting on March 1 and received 8.6 percent support.

The Social Investment Organization defines a socially responsible proposal as a matter involving the social responsibility record of a company.  This is distinguished from governance proposals, pertaining to how a company is operated.

For a complete list of shareholder proposals, visit www.share.ca