Vancity divests Enbridge holdings
In a press release, it stated that the decision is based on the US National Transportation Safety Board report on the Enbridge 2010 pipeline spill in Michigan. It said that the Alberta-based energy giant "no longer meets Vancity Investment Management’s environmental, social and governance (ESG) criteria for its socially responsible investments." The report, released in July, condemned the company's "poor handling" of the pipeline rupture which caused the biggest onland oil spill in US history.
VCIM is a sub-advisor on three SRI funds for IA Clarington and determines which holdings are contained within the funds, based on the criteria. Two of these funds had previously contained Enbridge holdings.
“When you purchase the IA Clarington Inhance SRI funds, you are also investing in a disciplined process that considers ESG factors and financial analysis,” Tamara Vrooman, President and CEO of Vancity said in the release.
“Vancity Investment Management’s portfolio managers balance risk, return and the impact of all the investments that are made. They believe in engaging with companies to improve their ESG performance, however, if companies no longer meet the ESG criteria, they will divest the holdings from the portfolio.”
The Vancouver Observer contacted Enbridge but the company did not respond in time for publication.