Vancity announced yesterday that it has divested its holdings in Enbridge Inc. based on the US National Transportation Safety Board report on the embattled company's 2010 pipeline spill in Michigan.
The credit union said Enbridge no longer meets Vancity Investment Management's environmental, social and governance (ESG) criteria for its socially responsible investments (SRIs).
As a result, Vancity Investment Management (VCIM) has divested its Enbridge holdings in the IA Clarington Inhance SRI funds, which it manages.
VCIM is a sub-advisor on three SRI funds for IA Clarington and determines which holdings are contained within the funds, based on the ESG criteria. Two of these funds previously contained Enbridge holdings.
Tamara Vrooman, president and CEO of Vancity, said, "When you purchase the IA Clarington Inhance SRI funds, you are also investing in a disciplined process that considers ESG factors and financial analysis.
"Vancity Investment Management's portfolio managers balance risk, return and the impact of all the investments that are made. They believe in engaging with companies to improve their ESG performance; however, if companies no longer meet the ESG criteria, they will divest the holdings from the portfolio."