|April 12, 2007|
Climate Change Risks in Canada's Oil and Gas Sector
|This latest report from The Ethical Funds Company evaluates how Canada's oil and gas companies are responding to the challenges of climate change. The analysis is designed to assist these companies, as well as investors, in their efforts to reduce the risks associated with climate change. |
Given the level of scientific certainty concerning the man-made causes of climate change, and the range of threats posed to the environment, human health, and the global economy, oil and gas companies in future will operate under more risky and possibly hostile business conditions, notes Ethical Funds.
These risks to oil and gas companies bring risks to the institutions that invest in them. To that end, companies need to take immediate steps to reduce their risk exposure, and investors need to support companies taking these steps - and provide appropriate incentives to those that have yet to take action, asserts the report.
Among the findings of the study is that only two of the 48 Canadian companies assessed are responding appropriately to the risks presented by climate change in the view of Ethical Funds. Among Canadian firms, only Shell Canada and Suncor are well-positioned to function in a more carbon-constrained environment, having established comprehensive management systems, strategies, carbon pricing, renewable energy investments, and high levels of transparency, says the report.
Other main findings of the report include:
Read the full report from The Ethical Funds Company, Head in the Oil Sands? Climate Change Risks in Canada's Oil and Gas Sector (PDF).
Source: Ethical Funds Company.