Pattie Lovett-Reid: Ethical investors won’t put up with VW-style fraud
bnn.com | Published September 21, 2015
By Pattie Lovett-Reid
ANALYSIS: Volkswagen Canada has stopped sales of many of its diesel models following revelations the automaker had rigged emissions tests for almost 500,000 diesel cars in the U.S.
The stop-sale order came three days after the U.S. Environmental Protection Agency (EPA) revealed that half a million diesel-powered VWs had been programmed to bypass emission controls, except during emissions tests. The number of cars worldwide is mounting 11m and quite likely will continue to grow.
Never mind the fines and class action lawsuits launched here in Canada and the 20-percent-plus drop in the stock today on top of yesterday’s 18-percent drop. This has become a PR nightmare for the company. Simply put, we care about the environment, and investors won’t tolerate the lack of respect to the consumer, the environment, or even the investor.
In the broader context, sustainable investing or socially responsible investing (SRI), as it has been termed in the past, isn’t just for the earthy, crunchy, nature-loving investors anymore. Sustainable investing is mainstream and very popular with investors, giving them a chance to invest their money and allow it to grow, all the while knowing their investments are doing something good for the world.
SRI is taking on new importance because… read more>