Companies and investors respond to the call for reconciliation

The National Day for Truth and Reconciliation is a good time to remember that investors and companies, like other stakeholders in society, have an essential role to play in reconciliation. We recall that in its final report, the Truth and Reconciliation Commission calls on companies to adopt the United Nations Declaration on the Rights of Indigenous Peoples, which includes, among other measures, establishing a rigorous process for obtaining the free, prior and informed consent of indigenous peoples before initiating projects affecting their rights, lands or resources; ensuring equitable access to jobs for indigenous peoples; and providing employees and management with information on the history and rights of indigenous peoples.

While many companies continue to turn a deaf ear, others have clearly heard the call to action and have taken their first steps towards reconciliation. For example, the Canadian Council for Aboriginal Business (CCAB) announced on September 6, 2022 that the list of companies committed to building positive relationships with Indigenous businesses and communities is constantly growing. The CCAB congratulated more than a dozen companies on achieving new Progressive Aboriginal Relations (PAR) certification. Among them was Sodexo Canada Energy and Resources, which was awarded RPP Gold certification for demonstrating "sustained leadership in Aboriginal relations" and demonstrating "best practice for those companies introducing Aboriginal relations to their business strategy or seeking to improve year over year." For their part, Deloitte Canada, Hudbay Minerals and Forbes Bros have achieved Silver PAR certification.

PAR is the first corporate social responsibility program with a focus on Indigenous relations. It audits companies' initiatives and results in four performance areas: Leadership Actions, Employment, Business Development, and Community Relationships. As of December 2022, there were nearly 200 companies either certified or in the certification process, including mining and oil and gas companies such as Suncor, Syncrude, Imperial Oil and Cenovus.

For their part, responsible investors have continued to work to ensure that companies respect the rights of Indigenous peoples and respond to the call to action from the Truth and Reconciliation Commission of Canada.

In 2022, following a fruitful dialogue with the Shareholder Association for Research and Education (SHARE), which represented the Atkinson Foundation, the management of Toromont Industries supported a proposal asking it to explain to shareholders the extent to which its policies and practices concerning relations with Indigenous communities, the recruitment and advancement of Indigenous employees, internal training on reconciliation with Indigenous people and procurement from Indigenous-owned companies have been certified or compare to the standards developed by qualified Indigenous organizations. This proposal achieved an approval rate of 99.04%.

This is reminiscent of the success achieved by SHARE in 2021, when an amended proposal from the Atkinson Foundation on reconciliation with Indigenous people garnered a 98% approval rate at the TMX Group's general meeting, after management recommended to support the proposal. It should be emphasized that the company is now engaged in PAR and is in the early stages of monitoring and managing its Indigenous relations strategies.

Finally, it should be noted that in 2022, a proposal submitted to Onex by the Catherine Donnelly Foundation, similar to the one approved by the management of Toromont Industries, received an approval rate of 16.6%, which is more than respectable for a social proposal opposed by management, especially since the Chairman and CEO of Onex, Gerald W. Schwartz, is also the major shareholder of the company.

Sources: Canadian Council for Aboriginal Business, PAR Companies, ref. September 29, 2022, https://bit.ly/3SFMujS ; Canadian Council for Aboriginal Business, Canadian Council for Aboriginal Business announces Canadian corporations to be recognized for achieving certification in Progressive Aboriginal Relations™ (PAR), September 6, 2022, ref. September 29, 2022, https://bit.ly/3E64NL8