In recent weeks, BP's involvement in the Gulf of Mexico oil spill has cast a spotlight on the company's environmental efforts and practices. While the daily news headlines may temporarily raise awareness of how the company addresses the current situation, shareholder advocates such as Mercy Investment Services have a long history of engaging BP in hopes of correcting environmental problems and preventing future issues.
As a socially responsible investor, Mercy Investment Services engages companies that are owned in the investment portfolios of the Sisters of Mercy. Engagement is carried out in a variety of ways: the filing of shareholder resolutions, sharing of concerns by letter to companies and meeting with them to have a dialogue on issues. The recent oil spill into the Gulf of Mexico is certainly one example of the risk to our ecosystems from the production of oil and reminds us all of the oil spill from the Exxon Valdez that devastated the Alaskan coast or the Texaco oil operations that polluted the Amazon rainforest in Ecuador. As a serious issue connected to our Critical Concerns, Mercy Investment Services addresses these environmental risks through its ownership of BP stock and engagement of the company.
An evolving area of environmental concern is the energy companies' planned production of crude oil from Canadian oil sands, which represent the largest crude oil deposits outside the Middle East. The oil product, bitumen, is generated through mining, rather than drilling, which requires the use of hot water to produce. Concerns are that oil sands production can be harmful to air, water and land. Click here to read a New York Times article or an IPS article to learn more about the projects.
BP, which has initiated three Canadian oil sands projects in Alberta, Canada, is owned within our investment portfolio. In April, Mercy Investment Services joined 35 other socially responsible investors in a letter to BP raising concerns about the projects and how BP would manage the environmental risks. Click here to read the letter, which encouraged BP to increase its disclosure of its actions to mitigate the risks. During a May 19, 2010, dialogue with investors, BP appeared open and willing to engage on all questions related to the Canadian oil sands. Participants learned that the company is deploying new technology that uses a re-circulating hot water system that will reuse most of the water in production and will not use freshwater for production nor discharge contaminated water into freshwater systems. The company has committed to improved disclosure of risks in its sustainability report beginning in 2011. As an active shareholder, Mercy Investment Services will continue our efforts with energy companies, asking for transparency in their operations and accountability to our environment.
We invite you to use this Prayer for the Gulf from the National Council of Churches of Christ Eco-Justice Programs as we consider the impact of oil production on the environment.
