Thursday, September 20, 2012

Enbridge Removed from Jantzi Social Index

Citing the company’s poor environmental performance, Sustainalytics has removed Enbridge Inc. from the Jantzi Social Index, a socially screened stock index consisting of 60 Canadian companies that pass a set of broadly based environmental, social, and governance rating criteria.

“In the summer of 2012, the company experienced a spill in Wisconsin and at a remote Alberta field, each of which exceeded 1,000 barrels,” Sustainalytics said in a release. “This coincides with the recent conclusion of an investigation by the National Transportation and Safety Board into a 20,082 barrel leak at its Lakehead pipeline system in Michigan in 2010. “

Despite strong sustainability commitments and recent capital investment in pipeline integrity management programs, the company has failed to prevent significant releases and its spill record is concerning to investors, Sustainalytics added.

It’s another setback for Enbridge, which last month was removed from the IA Clarington Inhance SRI funds by Vancity. That decision was based on the U.S. National Transportation Safety Board report on the Enbridge 2010 pipeline spill in Michigan.

Vancity Investment Management is a sub-advisor on three SRI funds for IA Clarington and determines which holdings are contained within the funds, based on ESG criteria. Two of these funds previously contained Enbridge holdings.

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