Northwest & Ethical Investments LP chose Earth Day to release its Ethical Funds Sustainable Investing Program Annual Report detailing the program’s challenges and successes in 2009, as well as commitments for 2010.

“With the publication of this report, we walk our talk.” Robert Walker, vice president of sustainability, said Thursday. “The responsible investment industry consistently calls for enhanced disclosure from the companies we all invest in. This report fulfills our obligation to tell our investors how we are implementing our commitments to them.”

Major issues covered in the program for 2009 included: climate change; biodiversity; safeguarding water; human rights; eliminating sweatshop conditions; respecting Indigenous Rights and engaging communities; and building transparency. In 2009, Northwest & Ethical participated in more than 5,000 corporate dialogues with Canadian and international companies at varying levels of intensity. Thirty-four of 46 ‘Focus List’ dialogues generated positive results, notably on climate change and human rights in the supply chain, Northwest & Ethical said.

The selection of Focus List companies for engagement is based on a systematic review of material ESG risks, portfolio exposure to these risks, and an evaluation of the potential to effect change.

Significant progress was made with electronics firms in 2009, in particular with Research in Motion (RIM) and Rogers. RIM has joined the Global Electronics Sustainability Initiative while Rogers has now adopted a code of conduct that mirrors the Electronics Industry Code of Conduct (EICC), the industry-leading standard. Telus is slightly behind but is drafting a code of conduct that will likely be based on the EICC, Northwest & Ethical noted.

2009 also saw the release of the oil sands benchmarking report, Lines in the Sands. In parallel to the benchmarking research, Northwest & Ethical continued dialogues with many Canadian oil sands players including Suncor, Nexen, Canadian Natural Resources, Petro-Canada (pre-merger), Canadian Oil Sands Trust/Syncrude, and EnCana (now Cenovus).

Northwest & Ethical is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group.

IE