Two of Calgary’s largest players in the oil sands sector are being targeted by so-called ethical investment funds to account for their climate change commitments, or lack thereof, in filings with the US Securities Exchange Commission (SEC)..Duncan BC-based Investors for Paris Compliance — a nod to the Paris Accord summed up in the nifty acronym I4PC — succeeded in putting forth motions to be voted on at each company’s annual general meetings later this spring..According to I4PC, both companies made commitments to achieving net zero emissions reductions by 2050, but accuses each other of advocating against government climate policies in public statements and discourse with public officials in favour of fossil fuel expansion — which it says would actually increase emissions.."You can't just say you are committed to net zero then lobby governments against it," said Duncan Kenyon, I4PC’s director of corporate engagement. "Investors are not fond of inconsistencies and will get a chance to express their opinion through their votes.".I4PC is part of a network of so-called ethical investment groups that target corporations on social causes — climate change is but one. Some are established players in the financial services industry and active investors. Rather than discourage investing in specific industries, they feel the best way to affect change is to be engaged. Some of these funds manage billions — even trillions — of dollars in the US and the UK and have been instrumental in defining various corporate ESG policies — net zero being one. .Others, like I4PC, are often referred to as ‘proxy holders’ who vote on behalf of third-party shareholders, usually along very narrowly defined issues. Sometimes they have small stakes in the target companies themselves — a few hundred shares — that allows them to propose motions in annual information circulars which publicly traded companies are formally required to disclose and address under the terms of their stock exchange listings. .I4PC is representing Victoria-based DI Foundation which holds a grand total of 55 Enbridge shares worth about $2,500. I4PC’s other targets have included Canadian banks including RBC and TD on a range of issues, including funding oil and gas development..The Cenovus resolution highlights the company's opposition to the proposed federal emissions cap for the oil and gas sector, both via its own representations and via its membership in industry associations and other lobby groups, I4PC said..Meanwhile, the Enbridge resolution details the company's extensive use of undisclosed “political front groups” in the US and donations to pro-fossil fuel politicians like Joe Manchin, I4PC said. As a result, Enbridge faces “significant political risk,” citing strong opposition by the Michigan government and extensive civil disobedience protests in Minnesota..The strategy is somewhat brilliant and disingenuous at the same time. It has virtually no chance of carrying the day. And it may in fact undermine efforts to reach meaningful compromise while hijacking the climate debate away from more meaningful and substantive issues..To wit: Cenovus is one of Canada’s top oil sands producers, yet its outgoing CEO Alex Pourbaix has been a moderate industry voice to encourage an equally moderate and cooperative approach to formulating workable climate change policies. It doesn’t seem outrageous for him to be sitting on industry associations and boards to advocate not just for Cenovus, but the Canadian oil and gas industry as a whole..Enbridge, meanwhile, is the link between Alberta’s oilfields and export points in Canada and the US including the Midwest and Gulf Coast. It's the target of Michigan Governor Gretchen Whitmer who wants to rip out the Line 5 mainline that supplies crude oil to both Ontario and the US Midwest, forcing the government of Canada to invoke Article IX of the 1977 Transit Pipelines Treaty in 2021..The issue has been simmering since a 2010 spill dumped more than a million US gallons into Lake Kalamazoo in the largest inland oil spill in the country’s history. The subsequent cleanup cost the company more than $1.2 billion and sparked almost a decade of litigation and regulatory scrutiny that continues to this day..Cenovus hasn’t yet responded to I4PC’s allegations but in documents filed with the US Securities Exchange Commission, Enbridge urged shareholders to “strongly” vote against the motion, accusing it of “covert intentions” and undertaken in “bad faith.”.“If adopted, the proposals would undermine the company’s deliberate and prudent approach to the energy transition and detract from the marked and measurable progress that the company has made and continues to make.”.Enbridge holds its AGM in Calgary on May 3. Cenovus has yet to announce its own date.
Two of Calgary’s largest players in the oil sands sector are being targeted by so-called ethical investment funds to account for their climate change commitments, or lack thereof, in filings with the US Securities Exchange Commission (SEC)..Duncan BC-based Investors for Paris Compliance — a nod to the Paris Accord summed up in the nifty acronym I4PC — succeeded in putting forth motions to be voted on at each company’s annual general meetings later this spring..According to I4PC, both companies made commitments to achieving net zero emissions reductions by 2050, but accuses each other of advocating against government climate policies in public statements and discourse with public officials in favour of fossil fuel expansion — which it says would actually increase emissions.."You can't just say you are committed to net zero then lobby governments against it," said Duncan Kenyon, I4PC’s director of corporate engagement. "Investors are not fond of inconsistencies and will get a chance to express their opinion through their votes.".I4PC is part of a network of so-called ethical investment groups that target corporations on social causes — climate change is but one. Some are established players in the financial services industry and active investors. Rather than discourage investing in specific industries, they feel the best way to affect change is to be engaged. Some of these funds manage billions — even trillions — of dollars in the US and the UK and have been instrumental in defining various corporate ESG policies — net zero being one. .Others, like I4PC, are often referred to as ‘proxy holders’ who vote on behalf of third-party shareholders, usually along very narrowly defined issues. Sometimes they have small stakes in the target companies themselves — a few hundred shares — that allows them to propose motions in annual information circulars which publicly traded companies are formally required to disclose and address under the terms of their stock exchange listings. .I4PC is representing Victoria-based DI Foundation which holds a grand total of 55 Enbridge shares worth about $2,500. I4PC’s other targets have included Canadian banks including RBC and TD on a range of issues, including funding oil and gas development..The Cenovus resolution highlights the company's opposition to the proposed federal emissions cap for the oil and gas sector, both via its own representations and via its membership in industry associations and other lobby groups, I4PC said..Meanwhile, the Enbridge resolution details the company's extensive use of undisclosed “political front groups” in the US and donations to pro-fossil fuel politicians like Joe Manchin, I4PC said. As a result, Enbridge faces “significant political risk,” citing strong opposition by the Michigan government and extensive civil disobedience protests in Minnesota..The strategy is somewhat brilliant and disingenuous at the same time. It has virtually no chance of carrying the day. And it may in fact undermine efforts to reach meaningful compromise while hijacking the climate debate away from more meaningful and substantive issues..To wit: Cenovus is one of Canada’s top oil sands producers, yet its outgoing CEO Alex Pourbaix has been a moderate industry voice to encourage an equally moderate and cooperative approach to formulating workable climate change policies. It doesn’t seem outrageous for him to be sitting on industry associations and boards to advocate not just for Cenovus, but the Canadian oil and gas industry as a whole..Enbridge, meanwhile, is the link between Alberta’s oilfields and export points in Canada and the US including the Midwest and Gulf Coast. It's the target of Michigan Governor Gretchen Whitmer who wants to rip out the Line 5 mainline that supplies crude oil to both Ontario and the US Midwest, forcing the government of Canada to invoke Article IX of the 1977 Transit Pipelines Treaty in 2021..The issue has been simmering since a 2010 spill dumped more than a million US gallons into Lake Kalamazoo in the largest inland oil spill in the country’s history. The subsequent cleanup cost the company more than $1.2 billion and sparked almost a decade of litigation and regulatory scrutiny that continues to this day..Cenovus hasn’t yet responded to I4PC’s allegations but in documents filed with the US Securities Exchange Commission, Enbridge urged shareholders to “strongly” vote against the motion, accusing it of “covert intentions” and undertaken in “bad faith.”.“If adopted, the proposals would undermine the company’s deliberate and prudent approach to the energy transition and detract from the marked and measurable progress that the company has made and continues to make.”.Enbridge holds its AGM in Calgary on May 3. Cenovus has yet to announce its own date.
