Enbridge Inc. to be removed from Jantzi Social Index
September 14, 2012
Today, Sustainalytics announced the following changes to the Jantzi Social Index (JSI)® effective as of the opening of markets on September 24, 2012:
• To be removed from the JSI: Enbridge Inc. (ENB: TSE)
• To be added to the JSI: Pacific Rubiales Energy Corp. (PRE: TSE)
Enbridge Inc. (Enbridge): Enbridge will be removed from the JSI due to its poor environmental performance, culminating in several recent spills. 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. 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 will continue to monitor Enbridge’s environmental record.
Pacific Rubiales Energy Corp. (Pacific Rubiales): According to Sustainalytics’ environmental, social and governance analysis, Pacific Rubiales ranks among the top 10 per cent of the oil, gas, coal, and consumable fuels peer group. The company engages in the exploration, development, and production of oil and natural gas in Peru, Colombia, and Guatemala and has demonstrated strong policies and management systems to mitigate the risks associated with operating in high risk countries.
• Pacific Rubiales became a signatory to the UN Global Compact in January 2011 and is a founding member of a regional network supporting the Global Compact in Latin American and the Caribbean.
• Pacific Rubiales commits to engaging with indigenous groups prior to the formal consultation process to ensure informed consent. Pacific Rubiales’ human rights policy includes commitments to respect the rights of all individuals indirectly and directly affected by its operations and to educate employees on human rights. The company also discloses initiatives to align security processes with its human rights standards.
• The company has an integrated health, safety, environment, and quality management system which is certified to ISO 14001, ISO 9001, and OHSAS 18001 and has developed a management and monitoring program for atmospheric emissions and air quality.
Pacific Rubiales is emerging as a well-positioned sustainability player in its peer group and a strong and transparent reporter. Sustainalytics will continue to monitor its encouraging ESG performance.
Disclaimer: Company additions to and removals from the JSI® do not in any way reflect an opinion on the investment merits of the company.