Praxis discusses carbon asset risk assessment with Statoil

FPO
Shareholder advocacy |

Fund family participates in shareholder advocacy dialogue on tar sands, oil extraction and greenhouse gas emissions

Praxis Mutual Funds, as part of its efforts to engage energy companies on climate change, participated in a June 2014 dialogue with Statoil regarding oil extraction from the tar sands of Alberta. The call, led by Boston Common Management, focused on Statoil’s history in Alberta, the role of the tar sands in Statoil’s energy mix, and the carbon mitigation strategies and environmental protections implemented by the company. The heavy oil extracted from the tar sands is more carbon-intensive than conventional oil, and its production emits significant greenhouse gases.

In the fall of 2013, Praxis joined a group of investors in sending a letter to Statoil requesting an assessment of the company’s carbon asset risk. “Carbon asset risk” refers to the risk that fossil fuel reserves listed on a company’s balance sheet may not be economical to extract, whether that is due to high extraction costs, climate change legislation, or other factors. Statoil responded with a detailed explanation of its view on its carbon asset risk, and cited its support for climate science and governmental action to reduce greenhouse gas emissions.

Praxis Mutual Funds will engage Statoil in continued dialogue on its tar sands operations, as well as its carbon asset risk.

About Praxis Mutual Funds and Everence Financial

Praxis Mutual Funds, advised by Everence Capital Management, is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with faith values. To learn more, visit praxismutualfunds.com.

Everence helps individuals, organizations and congregations integrate finances with faith through a national team of advisors and representatives. Everence offers banking, insurance and financial services with community benefits and stewardship education. To learn more, visit everence.com or call (800) 348-7468.

Everence
Author Praxis staff

Disclosure

As of March 31, 2014, the Praxis International Index Fund had invested 0.52 percent of its assets in Statoil. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.

The Fund’s social policy could cause the Fund to sell or avoid securities that subsequently perform well, and that the application of social screens may cause the fund to lag the performance of its index.