Three Canadian energy companies facing climate change shareholder proposals

In a major push this spring on climate change issues, Canadian investors are calling on Imperial Oil, Petro-Canada and Nexen for audited disclosures on their greenhouse gas emissions. Petro-Canada and Imperial Oil are also being asked to report on renewable energy opportunities. 

The proposals will be on the agenda of the companies' annual meetings on April 21 (Imperial Oil), April 27 (Petro-Canada) and May 4 (Nexen).

SIO members Real Assets Investment Management and Ethical Funds co-filed a proposal at Petro-Canada on greenhouse gas disclosure. Real Assets also filed a similar resolution at Nexen while the Soeurs de Saint-Joseph-de-Saint-Hyacinthe filed a similar proposal at Imperial Oil.

"Climate change has significant potential economic consequences," states the proposal. "Fossil fuels, including petroleum products, contribute to increased greenhouse gas emissions, the source of climate change. Companies who produce fossil fuels, or depend on their sale as a major source of revenue, are incurring financial risks and potential liabilities." The proposal asks the companies to issue audited statements on their initiatives to reduce greenhouse gas emissions.

The three companies are urging shareholders to reject the disclosure proposal, saying that they already file information under the federal Voluntary Challenge and Registry (VCR). However, in a published  analysis, the Shareholder Association for Research and Education (SHARE) argues that there is a lack of consistency in the reports made to the VCR. It also states that there are authoritative standards that auditors can use as well as federal Environment Canada standards for assessing and reporting greenhouse gas emissions. SHARE recommends that investors support the proposals.

Ethical Funds and Real Assets are also asking Petro-Canada and the Congregation des Soeurs de Sainte-Anne is asking Imperial to report on how the companies have evaluated market opportunities for renewable sources of energy.

In its analysis, SHARE states that renewable energy will be more sustainable over the long term and that investors would benefit from more comprehensive reports on this topic. It recommends that investors support the proposals.

For more information, see Ethical Funds Shareholder Resolutions and Real Assets Newsletter.

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