September - December 2022

Are teachers’ pension funds fueling the climate crisis? - December 15, 2022. Karen Weisberg and Lisa Jeffrey. Green Teacher.

B.C. public sector pension funds fuelling climate change, claims advocacy group - December 21, 2022. Graeme Wood. Vancouver is Awesome.

A new year’s resolution for federal pension funds: Stop financing fossil fuels - December 28, 2022. Patrick DeRochie. Corporate Knights. 

Canada’s top financial minds are trying to define the green energy transition. It won’t be easy - December 30, 2022. Jeffrey Jones. The Globe and Mail.

‘My pay is going into this destruction’: Ontario teachers decry new pension board member with oil and gas ties - November 28, 2022. Natasha Bulowski. National Observer.

“There's obviously a less direct conflict there than somebody who has a current legal obligation to these companies,” said DeRochie. But it’s illustrative of the “deep entanglement” that exists between the country’s 10 biggest pension funds (including the OTPP) — which collectively manage more than $2 trillion in assets — and the fossil fuel industry, a Shift Action analysis found earlier this year.

”Ontario Pension Manager Earns Praise for New Climate Targets, Concern About ‘Weasel Words’.” - November 27, 2022. The Energy Mix Staff. The Energy Mix. 

A Shift Action release highlighted [IMCO’s] 20% investment commitment, the 50% emissions intensity reduction, and the commitment to engagement. But it cautioned that the language on climate guardrails “contains some concerning and confusing loopholes”.

Corporate Citizen of the Year: University Pension Plan’s Barbara Zvan is at the vanguard of climate action - November 24, 2022. Deborah Aarts. Globe and Mail. 

It was an unexpectedly bold statement for [the year-old UPP] to make, one that “unequivocally established [the UPP] as a climate leader in Canada’s pension sector,” according to Shift: Action for Pension Wealth and Planet Health, a charitable initiative dedicated to advancing sustainable pensions.

IMCO announces interim carbon reduction targets for 2030  - November 24, 2022. Benefits Canada staff. Benefits Canada. 

Oil executive should not be on board of teachers’ pension fund - November 24, 2022. Nigel Barriffe, Lisa Jeffery and Betty de Groot. Toronto Star. 

Pension investor's 'huge' climate plan lacks clarity with 'weasel words,' group says - November 22, 2022. Jeff Lagerquist. Yahoo Finance Canada. 

Canadian Pension Fund Rejects Divestment, Takes Fire for Fossil ‘Entanglements’ - November 2, 2022. Gaye Taylor.The Energy Mix. 

“In some cases, fossil fuel companies that CPPI privately owns are drilling new fracking wells, expanding oil and gas production, prolonging offshore gas drilling, and building new pipelines,” all of which is “incompatible with a 1.5°C future and CPPI’s own net-zero commitments,” Shift said.

Ottawa says it's willing to hold big banks accountable for their climate pledges - November 2, 2022. David Thurton. CBC News. 

On Wednesday, a new report from three environmental groups called on the government to bring in tougher regulations for the sector because, according to its authors, financial institutions won't do it themselves.

Advocacy groups say finance sector needs regulation to push it on climate action - November 2, 2022. Canadian Press. CityNews.

Pension watchdog zeroes on climate targets - October 18, 2022. Tyler Choi. Sustainable Biz Canada. 

“So just in the last two or three years that we’ve been doing this work, we’ve seen some huge progress from the pension funds on this issue,” DeRochie said. “I think that they’re recognizing the opportunity here as well, not just the downside of continuing to invest in companies that are making the planet uninhabitable.”

Memo to CPPIB: There’s no such thing as ‘no-carbon oil’ - October 17, 2022. Adam Scott and Patrick DeRochie. Corporate Knights.  

CPPIB’s mandate, to invest the CPP funds to achieve a maximum rate of return without undue risk of loss, does not involve assuming extraordinary climate-related financial risks to prop up an industry facing structural decline. Fossil fuel companies are desperate to preserve their business model and prolong the use of oil and gas, but our pension capital cannot be their lifeboat. 

2022 Risk Management Conference: Institutional investors have a fiduciary duty to assess, mitigate climate-related risks - October 6, 2022. Lauren Bailey. Benefits Canada. 

EXCLUSIVE: Pension Fund Gambles Retirement Savings on Alberta Oilfield Buy - October 5, 2022. Mitchell Beer. The Energy Mix. 

“This might not be CPP Investments’ decision, but we should expect a pension fund to question the wisdom of owning a company that’s ignoring the scientific consensus that new oil and gas production must end immediately to secure a 1.5˚C future,” [Shift Senior Manager Patrick DeRochie] told The Mix in an email. “CPPIB-backed Teine Energy is instead gambling $400 million on an assumption that oil and gas will continue to be profitable in the longer term, when the evidence suggests the industry faces structural decline.”

AIMCo CEO Contradicts Policy with Fossil Investment Pitch, Watchdog Says - October 2, 2022. The Energy Mix Staff. The Energy Mix. 

CPPIB says it’s using investments to push companies to decarbonize - September 28, 2022. Jeffrey Jones. Globe and Mail. 

“The CPPIB’s climate strategy is not credible without a clear, science-based plan for our national pension fund’s massive investments in the primary cause of the climate crisis: fossil fuels.”

Stopping the cash flow to fossil fuels - September 28, 2022. Susan Koswan. Waterloo Record. 

Advocates urge regulation of banks’ climate commitments to avoid greenwashing - September 19, 2022. Shawn McCarthy. Corporate Knights.

“Finance is the next front in climate accountability,” Alan Andrews, climate director for Ecojustice, told a conference on sustainable finance that Environmental Defence, Ecojustice and Shift hosted along with the UN-backed Principles for Responsible Investing in Toronto on September 13. 

June - August 2022

Head to Head: When it comes to fossil fuels, is divestment or engagement the right route for institutional investors?  - August 12 2022. Adam Scott vs. Richard Brooks. Benefits Canada. 

“Timebound and robust engagement toward climate-safe pathways is essential, but if companies or sectors are unable, or unwilling, to align their business model with a net-zero pathway, pension managers should make sure their divestment tool is taken out and put to good use.”

Sen. Rosa Galvez is crafting policy for transparency in financial sector - August 8, 2022. Aislinn Clancy. The Hamilton Spectator. 

“Bill S243 and public pressure from organizations like Shift Action for Pension Wealth and Planet Health are important to continuing to educate and demand that financial institutions prioritize smart long-term investments in planetary survival.”

How do you make oil investments attractive in a climate crisis? Hire a pension executive - July 28, 2022. Drew Anderson. The Narwhal.

“If they truly understood climate science, they would be much more honest about what needs to happen now, which is to flow capital out of that sector and into solutions as quickly as possible,” [Adam Scott, Director, Shift] says of the Canada Pension Plan.

UPP climate action plan establishes 2040 net-zero portfolio target - July 26, 2022. Gideon Scanlan. Benefits Canada. 

“It’s clear that the [University Pension Plan] is listening to, learning from and acting on the concerns of its members, including those who are experts in climate science, sustainable finance and climate and energy policy.” 

When it comes to Canadian pensions, there’s a new climate leader in town - July 22, 2022. John Woodside. National Observer. 

'Impossible to track' climate action of Canada's $2T pension industry: study - July 22, 2022. Jeff Lagerquist. Yahoo Finance. 

Campaign ramps up to pressure one of Canada’s largest pension firms to divest from fossil fuels - July 8, 2022. Cloe Logan. National Observer.  

“We're hearing more and more that public sector workers don't want their retirement savings invested in oil and gas companies that are making the future uninhabitable with their own savings, (and) whose business model is completely inconsistent with their own retirement security,” [Patrick DeRochie, Shift’s Senior Manager] said.

IMCO unveils ESG strategy, discloses portfolio emissions - July 5, 2022. Benefits Canada Staff. Benefits Canada. 

“[The Investment Management Corporation of Ontario] has committed to net-zero emissions across its portfolio by 2050 or sooner, but still needs to set interim targets to reduce the emissions of its portfolio and scale up investments in climate solutions.”

Expert panel: A checklist for a credible climate plan - June 9 2022. Laura McGrath op-ed. Benefits Canada.

HOOPP unveils updated plans to reduce emissions in real estate portfolio - June 7 2022. Benefits Canada Staff. Benefits Canada. 

“While the real estate carbon reduction goal does not take into account scope 3 emissions and covers the emissions from only those buildings over which HOOPP has operational control, the target is a significant mid-term commitment on the path to net zero across the fund’s entire portfolio.”

Canadians’ $100B oil and gas problem - June 7 2022. John Woodside. National Observer.

Pension funds especially need to get better at understanding their risk exposure, [Adam Scott, Shift’s Director] said. To date, their focus has been on the physical risk to their investments — fires, floods and other climate impacts that could threaten profitability. 

Canada Pension Plan will stay invested in carbon emitters and China, CPP Investments head says - June 3, 2022. Christine Dobby. The Toronto Star.

“Many companies, in particular those based on the production and transportation of coal, gas and oil, do not have viable or profitable pathways to zero emissions,” Shift said in a statement after CPP announced its net-zero strategy.

January - May 2022

Feds reclassified Trans Mountain as a ‘non-agent’ Crown corporation to avoid parliamentary scrutiny, says NDP critic - May 19, 2022. Kevin Philipipillai. The Hill Times.

Scotiabank’s exit from lobby group is a blow to oil and gas industry - May 12, 2022. Carl Meyer. The Narwhal.

“I think that the financial industry needs to disassociate itself from industry associations that are actively trying to tank Canada’s climate goals, and obstruct, delay and prevent good climate policies from being put in place,” [Patrick DeRochie, senior manager at Shift Action for Pension Wealth and Planet Health] said.

Canadian pension funds are making climate promises they’re not backing up - May 12, 2022. Patrick DeRochie and Andhra Azevedo op-ed. Corporate Knights.

Overall, the responses paint a picture of a pension industry that remains unprepared for the climate crisis and uncertain about what to do with their massive investments in the primary cause of that crisis – fossil fuels. Canada’s pension industry looks increasingly out of step with at least 125 leading pension funds around the world that have listened to their members and concluded that investments linked to fossil fuels are now too risky to hold in their portfolios.

Teachers' to invest up to US$1 billion in offshore wind developments - May 12, 2022. Barbara Schecter. Financial Post. 

“This is a smart investment,” Shift said of Teachers’ deal with Corio. “It allows the fund to profit from exceptional growth in the renewable energy industry while simultaneously protecting our shared climate. We hope other pension plans will follow this example.”

Pension funds have a fossil fuel conflict of interest - May 9, 2022. Patrick DeRochie op-ed. iPolitics. 

A pension administrators’ fiduciary duty includes taking decisive action to mitigate climate risk and overseeing investment decisions that have wide-ranging consequences for fossil-fuel companies. If a pension administrator simultaneously serves as a corporate director of an oil and gas company, beneficiaries might reasonably ask whether that responsibility conflicts with their duty to invest in their best long-term financial interests in the midst of a worsening climate crisis.

‘Deep Entanglements’ Connect Canada’s Biggest Pension Funds with 76 Fossil Companies, New Analysis Concludes - May 6, 2022. Mitchell Beer. The Energy Mix.

The “deep entanglement” between Canada’s 10 biggest pension funds and a roster of 76 fossil fuel companies raises serious questions about whether fund managers and trustees are looking out for the best interest of the beneficiaries who depend on them, according to a scathing, 40-page report released yesterday by Toronto-based Shift Action for Pension Wealth and Climate Health.

‘Deep entanglement’ between fossil fuel companies and pension funds cause for concern - May 6, 2022. Natasha Bulowski. National Observer. Also covered in The Toronto Star and The Narwhal.

Canadian pension funds’ fossil-fuel ties raise conflict-of-interest concerns - May 6, 2022. Jean Dondo.Wealth Professional. 

Entanglement raises questions about climate efforts - May 6, 2022. News Clips. Benefits and Pensions Monitor Magazine. 

Oil has long been used as a geopolitical weapon. Could electrified transport change that? - May 2, 2022. Andre Mayer. CBC News. 

Canada’s big pensions say they’re investing responsibly — so why won’t they tell us what they’re investing in? - April 30, 2022. Christine Dobby. Toronto Star. 

While some people don’t care about how their pension fund invests their money, DeRochie said, “Other people don’t know, and when we actually show them, they’re pretty outraged.”

“I think there’s a certain disconnect between the Bay Street finance crowd that manage these funds and the people who actually benefit from collecting a pension when they retire,” he said. “I would like to see that gap close a lot more.”

Four of the biggest Canadian pension funds have stakes in companies that transport Russian gas - April 29, 2022. David Milstead. Globe and Mail.

PSP Investments to support transition to global net-zero emissions by 2050 - April 26, 2022. Benefits Canada staff. Benefits Canada.

“The strategy’s commitments and implementation plans are lacking in clarity, but it’s clear that [PSP Investments] is listening to the growing concerns of beneficiaries and beginning to recognize the scale and urgency of the climate crisis,” wrote Adam Scott, the organization’s director, and Patrick DeRochie, its senior manager.

Canada’s largest federal employee pension plan doesn’t aim for net zero in new climate strategy - April 21, 2022. David Milstead. Globe and Mail. 

Government risks disaster by barely mentioning financial sector in climate plan - April 6, 2022. John Woodside. National Observer. 

“There's no company, bank or pension fund that's resilient to a three-degree world,” [Shift Director Adam Scott] said.

Ontario Pension Plan Cited as Climate Leader, Still Falls Short on Emissions Disclosure - April 4, 2022. The Energy Mix Staff. The Energy Mix.

Canadian pension funds diverge in approach to fossil fuels - March 28, 2022. Hugo Cox. Asian Investor. 

“Any company that explores for, produces, refines or transports fossil fuels does not have a credible net-zero pathway. Their core business model is in fossil fuels, which must be phased out in line with Paris targets,” [Patrick DeRochie, Shift’s Senior Manager] said.

The Ontario Teachers’ Pension Plan has a gas problem - March 1, 2022. Patrick DeRochie op-ed. Corporate Knights. 

For a young Ontario teacher hoping to retire in 2050 into a world with a stable climate, banking their retirement on companies that lobby against stringent climate policies, expand fossil gas infrastructure and lock in carbon pollution don’t make any sense – financially or ethically.

Canada Pension Plan pledges net-zero, but won’t drop fossil investments - February 10, 2022. Energy Mix. With files from Ian Bickis. Canadian Press.

September - December 2021

Trudeau signals all-hands-on-deck strategy for climate crisis - December 21, 2021. John Woodside. National Observer.

Pension charity criticizing CPPIB’s new environmental investing strategy - December 21, 2021. Gideon Scanlon. Benefits Canada.

“It’s encouraging to see that the CPPIB wants to invest in critical decarbonization pathways for hard-to-abate sectors. But the CPP doesn’t seem to grasp that there is no credible or profitable pathway to zero emissions for companies whose core business is exploring for, extracting, refining and transporting fossil fuels.”

Pension funds need credible plans to back their net-zero commitments - December 6, 2021. Laura McGrath op-ed. National Observer. 

“Canadians are seeing that the climate crisis already has us lurching from one emergency to another, and are questioning the wisdom of their pension funds financing fossil fuels on one hand while gesturing to vague net-zero announcements with the other.”

Making the planet greener with green investing - December 6, 2021. Susan Brandum. InsideOttawaValley.com. 

Ontario Teachers’ Pension Plan investing US$1-billion in U.S. alternative energy assets - November 30, 2021. David Milstead. The Globe and Mail.

OMERS committing to net zero, UPP facing divestment calls from university staff - November 29, 2021. Benefits Canada staff. Benefits Canada. 

Municipal employees pension fund commits to net-zero emissions by 2050 - November 29, 2021. Brigid Goulem. Kingston Whig-Standard. 

“Lots of companies have credible and profitable pathways to decarbonize themselves over time, but fossil fuel companies by and large, do not … there’s no credible pathway for companies that extract, produce and transport fossil fuels directly for combustion. So that’s why we single out of fossil fuels as being particularly high risk.”

Is Canada’s transition finance blueprint a recipe for greenwash? - November 19, 2021. Adam Scott. Corporate Knights. 

This attempt at creating a “made in Canada” green taxonomy amounted to a cynical effort to insert loopholes into sustainable-finance definitions to allow Canadian banks and institutional investors to continue financing oil and gas. If adopted, the CSA’s definition of transition finance could throw efforts to avoid carbon lock-in out the window, taking the “transition” out of “transition finance.”

Climate Risks and Opportunities - November 12, 2021. Adam Scott. Toronto Star podcast: Responsible Investing for a Sustainable Economy.  

Youth Campaigners Go to Court, Press Pension Funds for Climate Action - November 11, 2021. Alex Robinson. The Energy Mix. 

How Your Hard-earned Savings Fuel the Climate Crisis - November 11, 2021. James Rowe, Jessica Dempsey and James Mager. The Tyee.  

Activism is working to move pension funds away from stranded fossil assets - November 11, 2021. Elizabeth Perry. Work and Climate Change Report.

Canadian pensions are retiring fossil fuel investments - November 10, 2021. Toby Heaps, Ed Waitzer and Derek Eaton. Corporate Knights.  

Are Canada’s Big Eight pension funds committed to net-zero? - November 9, 2021. David McKie and Luc Rinaldi. National Observer. 

“Despite its modest investments in climate solutions and green real estate and claims to take the climate crisis seriously … HOOPP continues to invest hundreds of millions of dollars in the fossil fuel infrastructure and companies fuelling the climate crisis.”

How young people are using climate litigation to fight for their future - November 8, 2021. Alex Robinson. Corporate Knights.

OTPP Reduces Carbon Emissions Investment Political Activism Successful - PAC Chair - October 2021. RTOERO District 15 Halton. RTOERO Rapport. 

Canada Strives to Shake Climate Laggard Tag - October 26, 2021. David Craig. ESG Investor. 

“[Newly formed Climate Engagement Canada] needs to focus on the lobbying and PR campaigns of the fossil fuel industry. It is the biggest obstacle to Canada’s fight against climate change. They have been very effective at obstructing, delaying, and weakening climate policy. The coalition needs to get the fossil industry to get serious about ending the lobbying which has made Canada a climate laggard. The weight of these financiers and investors needs to be put into making this change.”

How green is your pension? For thousands of workers, it’s about to get greener - October 15, 2021. Daniel Martins. The Weather Network. 

“The ability of your pension plan to pay your benefits when you retire is directly linked to our collective ability to cut emissions to zero.”

Canadian pension plans face climate questions - September 30, 2021. Ruth Saldanha. Morningstar.   

“From what is currently disclosed (specific ESG integration criteria are rarely published), we think the funds' exposure to climate-related financial risk is unacceptably high (i.e. physical, transition, legal, regulatory risks). Canadian pension funds do not appear to have adequate controls in place to minimize these near-term risks.” 

Quebec Pension Fund to Divest Oil by 2022, Set New Carbon Target, but Won’t Drop Gas Pipeline Investments - September 29, 2021. Stephane Rolland. The Energy Mix. 

“It is amazing that it took until 2021 for a Canadian pension fund to finally recognize that protecting our retirement savings from the worsening climate crisis inevitably requires abandoning market exposure to high-risk fossil fuels.”

Canada’s second-largest pension fund is dumping its oil assets - September 29, 2021. John Woodside. National Observer.  

“[Pension funds] operate infrastructure around the world, and they have a real role to play as the owners and operators of infrastructure to make sure that there is a resilience to the changing climate, and they're actually planning for a future that's safe for their members.”

Beneficiaries pile pressure on Canadian pension funds - September 29, 2021. Steve Randall. Wealth Professional. 

Canadian pension funds feel the heat on climate - September 29, 2021. Emmy Hawk. ESG Investor. 

Canadian pensions warned of legal duty to manage climate risk - September 29, 2021. Catherine McIntyre. “ The Logic. 

Quebec’s Caisse to sell remaining oil production investments by end of next year - September 28, 2021. The Canadian Press. “” Canadian Press. 

“The CDPQ’s progress stands in stark contrast to the Canada Pension Plan, whose CEO said earlier this year that the Canada Pension Plan has no plans to institute a blanket screen on oil and gas during his tenure.”

Canada's second-largest pension fund says first to exit oil assets - September 28, 2021. Maiya Keidan. Reuters.

Quebec’s Caisse to Exit Oil Producers by 2022 in Climate Plan - September 28, 2021. Paul Sambo and Sandrine Rastello. Bloomberg Green.

Caisse de dépôt to exit oil production by end of next year in new climate strategy - September 28, 2021. Stephanie Marotta. Financial Post. 

“While gas may be less polluting than coal when burned, it remains a major source of climate pollution across the production supply chain.”

Canadian pension funds found to contribute to climate change - September 27, 2021. Patrick DeRochie op-ed. Impakter. 

“[N]one of Canada’s pension funds have gone far enough to protect their portfolios from the financial risks of climate change while working to ensure that their members retire onto a livable planet.”

OTPP to Reduce Carbon Emissions Intensity by Two Thirds by 2030 - September 20, 2021. Chris Hall. ESG Investor. 

Teachers’ Pension Fund Unveils Tough New Emissions Targets, Stays Mum on Fossil Investments - September 19, 2021. Mitchell Beer. The Energy Mix. 

Ontario Teachers’ ambitious net zero plan is ‘welcome step forward’ - September 17, 2021. Steve Randall. Wealth Professional. 

“Exclusionary screens and phase-out timelines for fossil fuel investments are an essential tool to reduce financial risks while charting a pathway to decarbonization.”

Canada’s third-largest pension fund beefs up plan to cut carbon emissions - September 16, 2021. Nia Williams and Maiya Keidan. Reuters.  

Ontario Teachers’ Pension Plan sets targets to hit net zero greenhouse gas emissions - September 16, 2021. Canadian Press.

Ontario Teachers’ Pension Plan ramping up green investments in net-zero push - September 16, 2021. Jeff Jones. Globe and Mail. 

Federal platforms fail to grasp economic threat of climate crisis: experts - September 15, 2021. Catherine Mcyntire. The Logic.

For climate-sake, Canada Pension Plan needs to take a serious look at its investments - September 7, 2021. James Rowe, Jessica Dempsey and James Mager. The National Observer.