Improving emissions disclosures at a Canadian oil and gas company
While more and more companies are disclosing data on greenhouse gas emissions related to their operations and value chain, the methods used and sources included in reporting still vary widely across issuers. To truly unlock the power of emissions data in investment decision-making, investors need reliable, consistent, and comparable data from individual issuers and across the market. While regulators are taking notice of this investor need, there's no requirement in Canada for issuers to provide external assurance for their emissions disclosures.
As part of our activities with Climate Action 100+, we were a co-lead in an engagement with a large Canadian oil and natural gas company. As part of that engagement, we requested that the company provide assurance for its scope 1 and scope 2 emissions so we could better track and compare that data both at the issuer and against peers. When the company continued to remain unresponsive after several requests, we decided, together with our co-leads, to escalate the matter by filing a shareholder resolution requesting that the issuer provide reasonable assurance on its scope 1 and scope 2 emissions. This process involved reaching out to other shareholders for support and continuing to engage with the company on the matter.
We ultimately had no need to file the proposal as, near the deadline to file, the company issued a public statement that, moving forward, it would provide the requested assurance. This was a significant step for the company, and investors will now have reliable and consistent emissions data from the firm year over year to aid integration of climate risk into investment decision-making.
The case studies shown here are for illustrative purposes only, do not represent all of the investments made, sold, or recommended for client accounts, and should not be considered an indication of the ESG integration, performance, or characteristics of any current or future Manulife Investment Management product or investment strategy.
Manulife Investment Management conducts hundreds of ESG engagements each year but does not engage on all issues or with all issuers in our portfolios. We also frequently conduct collaborative engagements in which we do not set the terms of engagement but lend our support in order to achieve a desired outcome. Where we own and operate physical assets, we seek to weave sustainability into our operational strategies and execution. The case studies shown are a sampling across issues and geographies. Our approach to ESG investing and incorporation of ESG principles into the investment process differs by investment strategy and investment team. It should not be assumed that an investment in the company discussed herein was or will be profitable. Actual investments will vary and there is no guarantee that a particular fund or client account will hold the investments or reflect the characteristics identified herein. Please see our ESG policies for details.
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