NEI Ethical Funds push for corporate responsibility

NEI Ethical Funds has released its 2014 Corporate Engagement Focus List, outlining plans to engage in intensive dialogue with more than 30 companies over the coming year to reduce portfolio risk and help build long-term sustainable value.

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Through environmental, social and governance analysis, NEI Ethical Funds will focus on the following key themes:

Energy in transition: NEI Ethical Funds will be asking companies on both sides of the energy equation—suppliers and consumers of carbon-based fuels—to intensify efforts to reduce emissions and to participate constructively in the debate about Canada’s future energy system.

Responsible resource extraction: Extractive industries can benefit communities, but can also exacerbate poverty, corruption and conflict – creating a more challenging operating environment. NEI Ethical Funds will continue to support extractive industry revenue transparency, and to ensure benefits are shared. NEI Ethical Funds will also continue to urge companies to fulfill their responsibility to respect human rights, worker safety, and community viability.

Food from farm to fork: NEI Ethical Funds will continue to focus on environmental and social risk in the food supply chain and begin to explore the role of consumer companies in ensuring everyone has access to a healthy diet.

Read: U.K. aims to boost financial industry ethics

Tax responsibility: Economies can’t thrive unless governments have the resources to provide education, healthcare and infrastructure. We will renew our focus on the role of companies in preventing tax base erosion.

Fair executive compensation: Too much focus on short-term financial indicators threatens the long-term value of companies for all stakeholders, including shareholders. NEI Ethical Funds will continue to ask for pay to be linked to performance on key environmental, social and governance indicators, as well as asking companies to explore ways to curb escalation in top executive compensation.

Board diversity: Research suggests that an independent board of directors with diverse perspectives contributes to corporate performance—while entrenched boards that encourage group-think may do the opposite. NEI Ethical Funds will continue to encourage companies to increase board diversity.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.