Pension Funds Urged to Step Up Climate Action
An advocacy group is urging Canada's public pension managers to leverage their financial influence to combat climate change, as political efforts become increasingly unreliable.
Shift Action for Pension Wealth and Planet Health released a report highlighting the need for greater action from Canada's major pension funds. The report emphasizes the urgency of financial leadership in the face of political backsliding on climate action, particularly with the potential rollback of carbon pricing policies.
The report assesses the climate commitments of 11 major Canadian pension managers, finding that while some progress is being made, the pace of action remains a concern. The report commends Quebec's CDPQ for its leadership, including its complete divestment from coal and oil assets. Conversely, the Alberta Investment Management Corp. received a failing grade due to its perceived politicization and lack of climate targets.
The report also criticizes the Canada Pension Plan Investment Board (CPPIB), the country's largest pension fund, for its lack of interim climate targets and its growing portfolio of oil and gas assets without a clear decarbonization pathway. CPPIB maintains its engagement with oil and gas companies to reduce emissions while ensuring continued access to energy.
The report assigns grades ranging from B+ for CDPQ to C- for CPPIB and F for AIMCo. The Investment Management Corp. of Ontario and University Pension Plan receive high marks, while the British Columbia Investment Management Corp. and Public Sector Pension Investment Board fall on the lower end.
Shift Action emphasizes the need for pension funds to transition from building capacity to leading the way on climate action. The report argues that long-term stability for pension funds requires a stable climate, highlighting the urgency of action beyond political cycles.
"The climate crisis is subject to the laws of physics and not to four-year election cycles," states Adam Scott, executive director of Shift Action.
9 Comments
Muchacho
“Policy decisions should be left to elected officials, not pension funds funded by our taxes.”
Coccinella
“I’m concerned this report prioritizes politics over the actual financial security of Canadians.”
Donatello
“Our pension funds have a responsibility to maximize returns, not serve as vehicles for climate change activism.”
Raphael
“It seems like a hidden attack on CPPIB; they’re trying to shame institutions into changing strategies.”
Leonardo
“The focus should be on stable returns for our retirements, not on unattainable environmental goals.”
Eric Cartman
“If our environment suffers, so do our long-term economic interests. Pension funds acting on climate change make sense.”
Stan Marsh
“Pushing for divestment is a risky move—we need energy diversity to secure stable portfolios.”
ZmeeLove
“Using pension funds as climate crusaders may compromise diversification strategies.”
Habibi
“Why should our hard-earned pension money be used for political activism? Let’s stick to sound investments.”