RPIA SUSTAINABILITY REPORT 2023
OVERVIEW FIRM
27
INVESTMENT MANAGEMENT
2023 ESG Engagement Examples
Convenience Store Operator December 2023
Environment
We met with a Convenience Store Operator in December that owns, supplies, and supports a coast-to-coast network of retail gas stations, electronic vehicle charging stations, frozen food retail locations, convenience stores, cardlock sites, bulk fuel, propane, heating oil, lubricants, and other related services to commercial, industrial, and residential customers; transports and distributes fuel through ships, rail, and highway carriers; and stores fuel in terminals and other owned and leased facilities, as well as engages in the low-carbon activities . In our view, this company’s role as both a gas station owner that is in the midst of a long-term transition to EV while also owning a refinery creates ample opportunity to engage with the company on its environmental initiatives and commitments.
Engagement Focus
The company has committed to expanding its EV network to 50 of its sites by 2024, and represents one of the largest growing ultrafast charging networks in British Columbia. The company seeks to understand consumer behavior as it relates to these sites, with the anticipation to expand to Quebec, Ontario and in the U.S., with a specific focus on the Rocky Mountain region, where EV infrastructure is still developing. The goal of the test sites is to determine whether EV drivers are as profitable as ICE drivers, and to utilize this key performance indicator to further build out the company’s EV transition plan.
Outcome
The company’s efforts and commitment to its EV transition did not result in an upgrade or positive outlook indication from Moodys. Nevertheless, we remain neutral in our view of the company. The EV conversion plan is being funded with low-cost government / CIB funding; however, the company does not seem to aspire to be a leader in EV, but is rather just following the market.
We will continue to engage with this company on their EV transition plan, as well as other environmental efforts.
For Illustrative Purposes Only
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