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Contact:
Bob Walker, Ethical Funds, 604-714-3833
Meg Wilcox, Ceres 617-247-0700 X148, 617-319-6457 cell
Investors Urge Energy Giant Enbridge to Address First Nations on Oil Sands Pipeline ProjectConocoPhilips Also Faces Shareholder Vote Regarding its Oil Sands Extraction ProjectMay 7, 2009 VANCOUVER – At Enbridge’s (NYSE:ENB) annual meeting in Toronto today, investors secured the support of 32 percent of shareholders, or $2.5 billion in shares, on a resolution seeking disclosure of potential roadblocks related to First Nation approval of Northern Gateway oil sands pipeline project. The resolution highlights that consent from Canadian aboriginal groups is a key risk that oil sands and energy companies, like Enbridge, must address. The $4.5 billion Northern Gateway Pipeline Project would stretch across Western Canada where aboriginal groups have not signed Treaties with the government or otherwise ceded their title to land. The pipeline would transport oil extracted from Alberta’s carbon-intensive oil sands to the Port of Kitimat in British Columbia, crossing through the traditional territories of more than 50 First Nations. Enbridge is a leading energy delivery company, headquartered in Calgary, Alberta, Canada, that operates the world’s largest liquid fuels pipeline. “The risk of First Nations opposition is material and investors are asking for full disclosure to track these risks and know where we stand,” said Bob Walker, VP of Sustainability at Ethical Funds, which filed the resolution. “Free, prior and informed consent of First Nations is a proactive measure to avoid lengthy legal challenges and continual project delays,” Mr. Walker added. Three extraction companies have recently put projects on hold or were denied permits in the same region of British Columbia based on lack of First Nation’s consent. Ethical Fund’s resolution cites a series of decisions by the Supreme Court of Canada upholding Aboriginal land rights. In addition, the resolution references a lawsuit from the Carrier Sekani Tribal Council, over the government’s failure to consult on the Gateway pipeline project; the Sekani’s traditional territory covers over one-third of the pipeline route. The resolution also cites The Haida Nation’s strong opposition to the project. ConocoPhilips also faces a shareholder vote on May 13, 2009 concerning its Canadian oil sands extraction project. Filed by Trillium Asset Management, the resolution requests that an independent committee of the Board prepare a report on the environmental damage that would result from the company’s expanding oil sands operations in the Canadian boreal forest, and that the report consider the implications of discontinuing these expansions. The shareholder votes come on the heels of the California Air Resources Board adoption of the world's first low-carbon fuel standard, which seeks to grade transportation fuels by carbon intensity and set a threshold beyond which refiners would be penalized for using carbon-heavy fuels. The standard would disadvantage oil extracted from Canadian oil sands because of its larger carbon footprint. Extraction of oil sands produces three times as much carbon as extraction of traditional oil reserves. An additional 13 states have proposed similar regulations, and the U.S. Congress is considering a federal standard. “Oil sand extraction is fraught with risks, from regulations mandating low-carbon fuels to potential First Nation litigation, and investors need to know if companies are prepared for and proactively managing these risks,” said Mindy S. Lubber, president of Ceres, a coalition of investors and environmental groups. About Ethical Funds
Launched in 1992, the Ethical Funds Company is Canada’s leading manager of socially responsible mutual funds. The Ethical Funds Company’s approach to investment incorporates the thesis that companies integrating best environmental, social and governance practices into their strategy and operations will provide higher risk-adjusted returns over the long term. Ethical funds is a division of Northwest & Ethical Investments. www.ethicalfunds.com About Ceres
Ceres is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as climate change. Ceres also directs the $7 trillion Investor Network on Climate Risk, a group of 78 institutional investors and financial firms focused on the business impacts of climate change. For details, visit http://www.ceres.org or http://www.incr.com Background
Vastly different than traditional oil reserves, the bitumen extracted from oil sands is a sticky mud-like substance that requires enormous amounts of energy and water to recover. Extraction of oil sands produces three times as much carbon as extraction of traditional oil reserves. Mining, upgrading and refining bitumen from oil sands requires the draining of wetlands, diversion of rivers, and the removal of trees and vegetation, further impacting biodiversity, water and air quality. The oil sands region covers a huge swath of the Albertan Province—35 million acres, or the size of New York State. Bitumen production has soared in Alberta over the past decade to roughly 1.3 million barrels a day. Under business as usual scenarios, output could double or triple by 2015. In September of 2008 Ceres and Ethical Funds hosted a briefing for over 100 investors to provide context and highlight risks in Canada’s Oil Sands. In April these same investors were invited to a second briefing specific to Enbridge’s Northern Gateway Pipeline Project. For more information, visit www.ceres.org/oilsands.
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