Monday, May 7, 2012
Greenpeace lauds Mackenzie following pulp & paper divestment
Greenpeace Canada is praising Mackenzie Investments after the mutual fund company announced it would no longer invest in Asia Pulp & Paper’s (APP) pulp operations, which have been linked to illegal logging and the clearance of endangered Sumatran tiger habitat.
“Mackenzie has shown commitment to ethical and environmentally responsible investing,” said Shane Moffatt, forest campaigner with Greenpeace Canada in a blog posted on the Greenpeace website. “Until APP stops destroying rainforests and critically endangered Sumatran tiger habitat, it will keep shedding customers and remain a pariah in the investor community.”
Mackenzie held shares in the APP subsidiary PT Indah Kiat Pulp & Paper worth US$24 million.
Greenpeace says Mackenzie’s announcement comes after another large international investor, Norway’s Skagen funds, said it was selling its shares in Indah Kiat, based on a “review of investment philosophy, ethical guidelines and our aim of providing our unit holders with the best possible risk adjusted return.” Indah Kiat’s share price is off 31% compared to last year.
Earlier this year, Greenpeace released a report following an investigation which found that the Indah Kiat mill is systematically violating Indonesia’s laws protecting the internationally protected tree species ramin. The report also revealed that the mill is supplied with rainforest timber from areas mapped as habitat of the Sumatran tiger.