Fair Trade Coffee: the tortuous trajectory of an EIG stock investment

How Green Mountain Coffee Roasters went from EIG darling and super-performer to that pariah of environmentalists – producer of non-recyclable, non-compostable single-cup coffee pods (dramatized in the spoof sci-fi horror video Kill the K-Cup).  And how the story has taken a positive turn once again, albeit with public investment now precluded…

A good year for GIÉ/EIG

EIG’s AGM was held on June 12th and reports presented indicated a successful year once again: good performance from the equities portfolio; continuing shareholder engagement; some interesting new community investments; an increase in membership; and – last but not least – creation of the EIG blog.

EIG Investments - Never a Dull Moment!

On the one hand, EIG members recently approved a proposal for a community investment in CoPower green bonds, which support small-scale clean energy and energy efficient projects – a move made even sweeter by noting that Canada is ahead of the US in making available this kind of platform to individual investors.

On the other hand, a game-changing announcement that Amazon is buying out long-time EIG holding Whole Foods.  In fact, EIG sold all its shares in Whole Foods last November, when it appeared to be struggling with competition from mainstream grocery stores offering more and more fresh, organic produce, albeit at US$31 /share, compared with the US$42 / share that Amazon is offering.  Oh well, you win some you lose some!

GIÉ/EIG - CN & train noise - Suivi

Following recent media coverage, EIG has sent a letter to CN expressing concern, as a shareholder, about the issue of rail noise complaints from residents bordering the CN tracks in the Pointe-St-Charles area of Montreal, which have been ongoing for over a decade. / Suite à la couverture récente dans les médias, le GIÉ a envoyé une lettre au CN (en anglais) exprimant son inquiétude, en tant qu’actionnaire, face aux  plaintes sur le bruit ferroviaire de la part des riverains des voies ferrées dans le quartier de Pointe-St-Charles à Montréal, depuis plus de dix ans.

EIG shareholder engagement and CN

For some years, EIG has engaged with companies in which it is a shareholder by writing letters to upper management on issues of concern.  As investors, we feel our voices should be heard. We last had an exchange of letters with CN in 2014 concerning rail safety, following the Lac Mégantic disaster.  An issue also in our sights, but never acted upon, was the fight of Pointe-St-Charles residents against CN concerning excessive noise, 24/7, from their shunting yards, which resulted in a complaint filed in 2015 with the Canadian Transportation Agency. Both sides agreed to mediation, which is continuing.  The issue is in the news again.  For a summary of the fight, see: Sur le bord de la track (La Presse, 26 avril 2017)

Marine Harvest - what a disappointment!

Sustainable seafood: sounds like a great responsible investment idea. Could it be Marine Harvest? (not!). Despite the positive image provided on Marine Harvest's website, further research into the company’s operations paints quite a different picture. Such as: infected farmed fish escaping into the ocean, contaminating other fish; untreated farm waters containing pollutants such as excrement, fish food, antibiotics and other medications leaking into the ocean; toxic sediments; infringement on aboriginal traditions. No, EIG will not be investing in this company until it cleans up its act.

Increasing CEO pay linked to decreasing company performance

For some years, EIG has followed the issue of excessive executive compensation, voting as shareholders against such pay packages as far as resources allow. In a new report, analysis shows a dramatic conclusion: the higher paid the CEO, the worse the company performance. Over 2 years of reporting, "not only does the group of 100 most overpaid CEO companies of the S&P 500 underperform the S&P 500 by 2.9 % points, but the firms with the 10 most overpaid CEOs underperformed the S&P 500 index by an amazing 10.5 % points and actually had a negative return, reducing the actual value of the companies' shares by 5.7%." 
See:  The 100 Most Overpaid CEOs