Climate Engagement Canada takes on firms dropped by CA100+

Continuity of engagement promised as Canadian initiative takes over work on local pipeline firms.

Climate Engagement Canada (CEC) has added TC Energy and Enbridge Inc to its focus list, Responsible Investor can reveal. 

The move by CEC comes weeks after the Canadian pipeline companies were removed from Climate Action 100+’s list as part of its phase two launch in June, which saw a total of 10 companies dropped as targets. 

At the time, a CA100+ spokesperson told RI that the changes had been made following analysis of recent CDP data “to ensure we remain focused on the top emitters”. However, they added that signatory investors plan to continue to engage the two – and other midstream firms – as part of the initiative’s global sector strategy workstream.

Launched in 2021, CEC is a $4.4 trillion collaborative engagement initiative targeting Canada’s heaviest emitters. It is co-ordinated by the country’s Responsible Investment Association, the Shareholder Association for Research and Education (SHARE) and Ceres.  

Its 27 founding members include RBC Global Asset Management, Alberta Investment Management Corporation, Addenda Capital, Manulife Investment Management, BMO Global Asset Management, Scotiabank and University Pension Plan Ontario.  

The 40 firms selected for engagement – which began in mid-2022 – operate across the Canadian economy in the following sectors: oil and gas, utilities, mining, agriculture and food, transportation, materials, industrials and consumer discretionary. 

According to a spokesperson, the CEC’s steering committee recently approved the move to include TC Energy and Enbridge, which had been recommended by the programme’s technical committee. 

“Both firms have been identified among the top greenhouse gas (GHG) emitting companies traded on the TSX and/or with a significant opportunity to contribute to Canada’s transition to net zero, further demonstrating sectoral and corporate climate action leadership in Canada,” the spokesperson told RI. 

They added that there will be strong continuity between the engagement undertaken under CA100+ and that undertaken through CEC. “The current [CA100+] lead investors will be able to continue under the CEC banner, and we’re reaching out to all of the participating investors to include them in future discussions.”

RI previously reported that Æquo was CA100+’s lead for TC Energy and Enbridge. A spokesperson told RI that the engagement services firm “is also involved with the CEC and will play the same role”.

CEC plans to publish the first results of its net-zero benchmark this year. The initiative’s spokesperson confirmed that both firms will be included in the evaluations.

A spokesperson for TC Energy told RI: “TC Energy had a positive and constructive engagement with Climate Action 100+ and we will take the same proactive approach with Climate Engagement Canada. We are at the early stages of engagement, and welcome the discussion regarding the role that Canadian energy plays in supporting global climate goals.”

A spokesperson for Enbridge said: “We are committed to working collaboratively with Climate Engagement Canada to move toward a lower-carbon future. In 2020, Enbridge became the first midstream company in Canada to commit to achieving net zero by 2050, with an interim target of 35 percent emissions reductions by 2030. We’re on track to reach those goals and have been making good progress.”