Meritas Mutual Funds and Real Assets Investment Management Inc. announced today that they are withdrawing a shareholder resolution calling on Enbridge Inc. to adopt measures to avoid complicity in human rights abuses.

The two socially responsible investment firms had co-filed the proposal for inclusion in Enbridge’s annual proxy circular later this year. Now they say that Enbridge is listening to their concerns.

“As investors, we were very concerned about potential human rights risks arising from Enbridge’s operations in Colombia,” explains Deb Abbey, portfolio manager and CEO of Real Asset. “We were especially concerned that security providers for the company might be associated with the Colombian paramilitaries.” Enbridge owns 24.7% of Colombia’s most important oil pipeline, and Colombia is home to the worst civil conflict in the Western Hemisphere.

“We talked to senior management and they listened. Enbridge CEO, Patrick Daniel has advised us that Enbridge will be adopting the Voluntary Principles on Security and Human Rights. He has also said that the company is willing to discuss implementation of the principles with us on an ongoing basis,” she said.

“This outcome is win-win,” said Dave Mowat, CEO of VanCity Credit Union. “Enbridge wins because capital markets today will have greater confidence in management’s ability to handle human rights issues when operating in zones of conflict, and the people of Colombia win because foreign investors are looking very seriously at human rights.”

In addition to Enbridge, Talisman, AEC, and Nexen also operate in Colombia. “Companies operating in zones of conflict need to be very careful to avoid even the appearance of complicity in human rights abuses,” says Gary Hawton, CEO of Meritas Mutual Funds. “They need strong human rights policies and procedures in place and effective management systems to ensure that their local partners – especially their security providers – do not violate human rights. The risk to shareholder value is very real.”