Oil sands monitoring
Investors need to understand, acknowledge and mitigate the environmental and social impacts deriving from oil sands development if companies are to avoid serious risks to their long-term value. Controversy and conflicting information about the extent of potential impacts create unwelcome uncertainty for both companies and their investors.
In March 2012, an investor coalition led by NEI Investments representing over US$ 1.6 trillion in AUM, sent letters to the governments of Canada and Alberta urging the effective and timely implementation of a world-class monitoring system for the oil sands region. The federal and provincial governments subsequently agreed to a joint monitoring program which will satisfy almost all of the key concerns that the investor group raised. As of February 2013 parts of the enhanced monitoring system, including new data gathering stations and methodologies, have already been implemented.