Rifting on climate: Major Canadian pension funds at odds over environmental concerns
In the latest annual climate report card by Shift: Action for Pension Wealth and Planet Health, the Canada Pension Plan Investment Board (CPPIB) has come under scrutiny for its climate policies. The report suggests that CPPIB is among Canadian pension managers falling short in climate commitments, notably for backing out of a commitment to achieve net-zero emissions by 2050[2].
Conversely, some pension managers like the University Pension Plan (UPP) rank comparatively high on Shift’s annual scorecard, indicating stronger climate policies[1]. The report card tracks the climate policies of 11 of Canada's largest pension managers.
The CPPIB's score dropped in two categories in 2024, making it the only fund to see lower scores on any indicator two years in a row[2]. The analysts from the report claim that OMERS, HOOPP, and OPTrust have made important incremental progress[2].
The report does not provide further detail on other pension managers that are lagging, but highlights CPPIB’s retreat on net-zero as a key concern in the latest climate evaluation[2].
AIMCo, already in last place in previous report cards, fell further behind due to blatant political interference in its governance, seemingly driven by fossil fuel interests[3]. As a result, AIMCo became the first pension manager to receive an overall F in any of Shift's report cards.
The Public Sector Pension Investment Board (PSP) and the British Columbia Investment Management Corporation (BCI) have lagged behind in the report due to their ongoing refusal to commit their portfolios to net-zero emissions[3].
IMCO, UPP, and CDPQ are at the front of the pack in the report, indicating stronger climate policies[1].
The Canadian pension sector is showing progress on climate issues, but there are areas where more action is needed. The report card serves as a valuable tool for pension managers to assess their climate performance and make necessary improvements.
[1] Shift: Action for Pension Wealth and Planet Health (2024). Annual Climate Report Card. [2] Shift: Action for Pension Wealth and Planet Health (2023). Annual Climate Report Card. [3] Shift: Action for Pension Wealth and Planet Health (2022). Annual Climate Report Card.
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