Socially responsible mutual fund manager, the Ethical Funds Co. has withdrawn shareholder resolutions presented to three Canadian companies after they agreed to improve disclosure on their climate change policies, the firm announced today.

Canadian Utilities Ltd., Finning International Inc. and Russel Metals Inc. all received shareholder resolutions from Ethical Funds after failing to respond to a 2007 survey issued by the Carbon Disclosure Project. The Project is an international initiative that encourages companies to reduce their carbon levels and greenhouse gas emissions.
Ethical said it withdrew the resolutions following positive dialogue with all three companies.

“As a founding member of the Carbon Disclosure Project it is vital for Ethical Funds to use the experience gained through our Shareholder Action Program to engage Canada’s leading companies and help them better understand the risks and opportunities facing them as a result of climate change,” said Bob Walker, vice-president, sustainability at Ethical.

As a result of this shareholder engagement, Ethical is now working with Canadian Utilities – an Alberta-based group of natural gas, electricity and water transportation companies – to improve its climate change reporting. Canadian Utilities is also considering responding to next year’s survey from the Carbon Disclosure Project.

As well, Ethical said it has had contact with Ontario-based metals distribution and processing firm, Russel Metals and Western Canadian heavy equipment dealer Finning International and both have agreed to respond to the Carbon Disclosure Project’s letter and questionnaire.