The Ethical Funds Company engaged more than 800 companies over the past 12 months as part of its shareholder action program. The company released a status report on the program today.

Today’s report reveals how Canada’s leading manager of socially responsible mutual funds engaged some of this country’s biggest companies in 2006 – including Alcan, Bombardier, CIBC, Encana, Petro-Canada, Power Corporation, Teck Cominco and Telus – helping to make these companies better corporate citizens and demonstrating to investors that their investments really can change the world.

“Investors are embracing the idea that socially responsible investments are not just about investing in good companies — it’s about making good companies better,” said Bob Walker, vp, sustainability, Ethical Funds. “Our standards reflect the values of our society and are based on consumer and investor research, expert opinion and portfolio exposure.”

“Our due diligence in the areas of environmental, social and governance factors gives our investors the peace of mind that their investments are being managed not only to the highest financial standards, but also to the highest sustainability standards,” added Walker.

The status report provides the results of the company’s 2006 corporate engagement activities and a guide to where it’s heading in 2007. It shows where Canadian corporate sustainability performance is improving and where more work needs to be done.

Companies were engaged at varying levels of intensity by Ethical Funds in 2006, covering seven major themes: climate change, biodiversity, genetically modified foods, HIV/AIDS, environmental justice, human rights and corporate governance.

Twenty-five of the 43 intensive dialogues with companies generated positive results, most notably on issues related to climate change and human rights. Of the 15 shareholder proposals filed by Ethical Funds, eight were withdrawn as companies signalled their willingness to respond to concerns in a meaningful way.

The new active shareholder environment and the movement of large institutional investors towards socially responsible investing have been important in affirming Ethical Funds’ work and in fostering change in the world’s global markets.

“The rise of the active shareholder in Canada represents a critical development in our industry and we are very pleased to see it,” said Walker.

The Shareholder Action Program 2006 Status Report can be read in full at: http://www.ethicalfunds.com/do_the_right_thing/about_ef/newsroom/2007_articles/sap_2006.pdf