Enbridge holdings divested from IA Clarington Inhance SRI Funds | Corporate Knights


Enbridge holdings divested from IA Clarington Inhance SRI Funds

Jeremy Runnalls is the managing editor of Corporate Knights Magazine. Follow him on twitter.

August 23rd, 2012: Vancity announced on Thursday that it has divested from all Enbridge holdings contained within the popular IA Clarington Inhance SRI funds that it manages. The American National Transportation Safety Board's (NTSB) critical report into the 2010 Michigan pipeline spill, released in July, accused the Calgary-based company of acting like “the Keystone Kops” while suffering “pervasive organizational failures" when working to contain the spill. After reviewing the report, Vancity determined that the company no longer fit the environmental, social and governance (ESG) criteria for its socially responsible investments (SRIs).

Vancity Investment Management is currently a sub-advisor on three SRI funds for IA Clarington, determining which holdings should be included based on their own ESG criteria. Two of these funds had Enbridge holdings until today. IA Clarington Inhance SRI funds performed well in the Corporate Knights annual Responsible Investing Ranking, with one fund, IA Clarington's Inhance Monthly Inc SRI fund coming in first with a score of 82 per cent.

In a statement, Vancity CEO and President Tamara Vrooman emphasized that "when you purchase the IA Clarington Inhance SRI funds, you are also investing in a disciplined process that considers ESG factor and financial analysis ... if companies no longer meet the ESG criteria, [we] will divest the holdings from the portfolio."

The NTSB final report in July was followed up several weeks later by another Enbridge pipeline spill in the United States, this time in Wisconsin, which led the company to shut down that pipeline indefinitely. Concerns over Enbridge's pipeline safety record are now affecting Canadian operations, with the Joint Review Panel examining Enbridge Inc's proposed Northern Gateway oil pipeline to Canada's West Coast announcing last week that it will be integrating the NTSB report and its recommendations into the review process.