Ethical Funds Inc. has filed a shareholder resolution with Petro-Canada citing concerns that too little is being done to meet the climate change challenge.

The proposal calls upon Petro-Canada to disclose the financial risks associated with their greenhouse gas emissions and to reduce these risks through market-based trading mechanisms and investments in renewable energy.

Ethical Funds Inc. and Real Assets Investment Management have jointly
filed the resolution to be distributed to all Petro-Canada shareholders in the
company’s management proxy circular and voted on at the 2003 annual general
meeting.

“While Petro-Canada has taken progressive steps to reduce greenhouse gas emissions and invest in alternative energy sources, company officials have, in recent months, made alarming statements about the impact of Kyoto Protocol ratification,” says Robert Walker, Vice President, SRI Policy & Research at Ethical Funds Inc.

The resolution will also shine some light on the willingness of Ottawa to embrace its own shareholder responsibilities. “The Government of Canada holds nearly 20% of Petro-Canada shares,” said Walker. “This puts Ottawa in the drivers’ seat on this resolution. It will be interesting to see if the
Government will assume its responsibilities as an investor and act in a manner
that’s good for shareholders, good for the environment, and consistent with
its own position on climate change.”

Ethical Funds Inc. and Real Assets Investment Management are filing
similar resolutions with other major Canadian oil and gas companies.