Historical Environmental Issues
Early grass root efforts focused on mismanagement of waste by-products that led to the severely-polluted Cuyahoga River in Ohio, the Sydney Tar Ponds in Nova Scotia, or the Love Canal in New York.
Of late, many groups have turned their attention to issues of climate and, specifically, greenhouse gas emissions (GHG) from the extraction and refinement of oil.
In a recent article or report, a group called “Unfriend Coal” took aim at the insurance industry’s business relationship with companies doing businesses involved in extraction and transportation of oil from the Alberta Tar sands.
Environmentalist “Report” on Insurance Companies Relationship with Oil Companies
Their report, “Heads in the Sand? The Insurance Industry, Tar Sands, and Pipelines,” is, not surprisingly, opposed to development of natural resources in Alberta, specifically the oil from the tar sands.
They state in their report: “Extracting and producing tar sands causes very high carbon emissions, poses massive risks to ecosystems and public health, and almost invariably violates Indigenous rights. Expanding tar sands extraction is incompatible with pathways to achieving the goals of the Paris Agreement. Insurers serious about their commitments to the Paris Agreement, Indigenous rights and broader ESG guidelines need to stop insuring tar sands projects, including the pipelines associated with them, and divest from specialized tar sands and pipeline companies.”
They also briefly discuss the associated pipelines, Kinder Morgan, TransCanada Keystone XL, and Enbridge Line 3 replacement program. They suggest that if no new pipelines are built, the oil will not be able to get to market.
As a point of reference, according to data provided by the Government of Canada, “Canada’s emissions in 2013 made up 1.6% of global GHG emissions.”
Greenhouse gas emission per person and gross domestic product (Source: Government of Canada)
The Government also states that, “In 2016, the oil and gas sector and transportation sectors were the largest GHG emitter in Canada. Together, they accounted for almost 50% of total [GHG] emissions.”
Perhaps this indicates that environmental groups may turn their ire toward those insurance companies that insure the transportation-related companies as well.
Keeping a pulse on environmental issues
While I have always been personally supportive of responsible development and use of our natural resources and appreciate our modern conveniences, I realize not everyone shares my view.
As stated at the beginning of this blog, we try to do our best to keep our pulse on environmental activity, whether it is from activists, regulators, or politicians, as they can have an impact on our clients’ business decisions. As for the outcome of the activist’s campaign to encourage insurance companies to divest from specific companies, we’ll see what may or may not result from their efforts.
Should you require assistance on an environmental matter – from the routine to peer reviews and litigation support – feel free to contact me at 519-979-7300.