Investor risk in Canada’s oil sands is the top issue that the Ethical Funds Company will address in 2009 as it pushes for corporate action to advance corporate sustainability, reduce portfolio risks and increase share value.
The company revealed this on Wednesday with the release of its 2009 Focus List that outlines the corporations and areas of focus for its Shareholder Action Program.
The list identifies 40 corporations in Canada and abroad, including such oil and gas heavyweights as Canadian Natural Resources Ltd., EnCana and Petro-Canada. Other sectors on the lists include real estate, mining, electronics, biodiversity, financial services, retail, forestry and paper, food and beverages and pharmaceuticals.
The companies will be asked to address one or more of the following issues:
- Fighting climate change
- Protecting biodiversity
- Safeguarding water
- Supporting human rights
- Eliminating sweatshop conditions
- Respecting indigenous rights and engaging communities
- Building corporate transparency
- Compensating executives based on their performance.
“For 2009, investor risk in Canada’s oil sands tops our list for engagement,” said Bob Walker, vice-president of sustainability for the Ethical Funds Company, in a statement. “Oil and gas companies represent a significant portion of the Toronto Stock Exchange and their approach to the mitigation of environmental and social risk will impact our country’s future – and potentially investors’ portfolios. Now is the time to be discussing these issues.”
In the past, action program successes have included encouraging Canada’s five major banks to consider climate risk in corporate lending; engaging Goldcorp Inc. on human rights issues at their mining sites; and facilitating ongoing dialogue with information technology companies on workplace conditions in the supply chain.
The Ethical Funds Company said its sustainability researchers and analysts would continue work with specific resource extraction companies and those involved in retail of these products to ensure that biodiversity is safeguarded, human rights are observed and the benefits of development activities flow to impacted communities. Sweatshop conditions — including labour standards, child labour and factory conditions – will also be a focus in the electronic and apparel sectors.