Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Monday, June 25, 2012

Ethical investors say federal budget creating "financial risk"

OTTAWA — Changes proposed to Canada's environmental laws in the federal government's budget implementation bill could "discourage investment" and create long-term financial risks to the economy, warns a national association representing nearly three dozen financial institutions, investment firms and credit unions.

In a letter sent to Prime Minister Stephen Harper, the Social Investment Organization said that changes to federal laws governing environmental assessments, fisheries, and endangered species would fail to meet responsible and ethical standards demanded by a growing number of investors.

"Inadequate environmental regulation creates serious long-term financial risk and has the potential to discourage investment," wrote Eugene Ellman, executive director of the association that promotes socially responsible investments, in the letter dated June 14.

The changes proposed by Harper's government would weaken some existing federal protections for fish habitat and species at risk to favour new industrial projects.

Other parts of the legislation also simplify the environmental review process while restricting the ability of some Canadians to participate in hearings on proposed projects.

Environment Minister Peter Kent has indicated that the government is reducing duplication, while maintaining environmental protection laws and toughening penalties for companies that do not respect conditions of project approvals.

But the association, which includes members such as Desjardins and AGF Investments, warned that the proposed changes to federal laws open the door to risks that investments in natural resource projects will lose money.

Michelle de Cordova, director of corporate engagement and public policy at NEI Investments and Ethical Funds, said all members of the association support efforts to reduce red tape, but fear the government is moving too fast on its reforms without an adequate review in Parliament.

"Where a project has significant risks attached, we want to know all about those risks," said de Cordova.

"If it's really got high risks and problems on the environmental and social side, it can be that maybe some of those projects should not go ahead."

The association estimates that about 20 per cent of Canadian investment assets are now managed under its own ethical criteria.

Globally, the association says that more than 900 institutions that manage over $30 trillion in assets have also signed onto the "principles for responsible investment."

The letter said that some of the risks caused by the proposed changes to environmental laws would include costly interventions to remediate unexpected impacts, damage to a company's reputation, the imposition of operating restrictions on projects to prevent further impacts, the erosion of the social license to operate, and lawsuits relating to health impacts or breaches of aboriginal rights.

"These factors can result in an increase in the cost of capital for companies and in loss of value for investors," said Ellman in the letter.

The budget implementation bill has passed third reading in the House of Commons and is expected to be approved by the Senate within days.

Original Article
Source: canada.com
Author: Mike De Souza

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