REPORT: Indigenous rights at risk as government looks to pension funds to invest in “major projects”
REPORT: Indigenous rights at risk as government looks to pension funds to invest in “major projects”. Pension funds’ failure to address Indigenous rights in investment policies leaves them exposed to financial, legal and reputational risks.
Shift: Action for Pension Wealth and Planet Health
Tuesday, August 18, 2026
Toronto, ON | Traditional territories of the Wendat, Anishnaabeg, Haudenosaunee, Chippewas and Mississaugas of the Credit First Nation.
A new report from Shift: Action for Pension Wealth and Planet Health (Shift) finds that none of Canada’s large pension managers have a publicly disclosed investment policy ensuring alignment with Indigenous rights, leaving pension beneficiaries’ retirement savings exposed to financial, legal and reputational risks as the federal government pressures pension funds to invest in “major projects”.
The report identifies at least four pension managers highlighting Indigenous economic benefits or opportunities related to investments in fossil fuel infrastructure, while omitting the climate-related financial risks and impacts that such investments create for pension beneficiaries and Indigenous communities.
Pension managers have a legal obligation to invest in the best interests of their beneficiaries. Investments that violate Indigenous rights and/or threaten climate stability can have a material impact on a pension manager’s ability to generate long-term returns. That’s why pension funds need to develop, implement and disclose Indigenous rights policies alongside credible climate plans.
Investment policies aligned with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and its core principle of Free, Prior and Informed Consent (FPIC) would provide required guardrails as pension funds navigate investment risks and opportunities, particularly in the current moment in Canada. The federal government is pressuring pension funds to invest in so-called “major projects”, while simultaneously undermining First Nations’ rights and undercutting the chances that such projects will meet the standard of FPIC. Equity or benefits agreements with some First Nations are highlighted at the same time that a lack of FPIC from other Indigenous rightsholders is ignored. In this context, investment policies that uphold Indigenous rights are critical.
Of the 11 pension managers examined in the report:
None, including the Canada Pension Plan Investment Board (CPPIB), a Crown corporation, have publicly disclosed investment policies citing UNDRIP or FPIC.
At least two - the Ontario Municipal Employees Retirement System (OMERS) and OPTrust - are currently developing reconciliation action plans. The Investment Management Corporation of Ontario (IMCO) has mentioned development of an “Indigenous rights strategy”, with no additional details provided. The Ontario Teachers’ Pension Plan has released an Indigenous Action Plan, although this plan does not address investment strategy.
At least four - Alberta Investment Management Corporation (AIMCo), CPPIB, British Columbia Investment Management Corporation (BCI), and OPTrust - have partnered with First Nations groups on fossil fuel infrastructure investments, including pipelines that enable oil sands extraction, a gas pipeline, and a gas plant.
At least four - La Caisse, OMERS, OPTrust and PSP Investments - have partnered with First Nations groups on climate solutions investments, including a transmission line, a net-zero real estate development, a solar project, and renewable energy infrastructure.
Indigenous equity participation, while important from a reconciliation perspective, does not necessarily mean that rights issues have been addressed. Some fossil fuel “major projects”, such as the proposed LNG Canada Phase 2 and West Coast oil pipeline, may include elements of “economic reconciliation” but do not have FPIC from all impacted nations. For pension funds, such investments should raise alarms from both an Indigenous rights and a climate perspective.
Quotes
“Respecting First Nations title and rights by embedding free, prior and informed consent into investment decisions is fundamental to responsible investment. We call on the Canada Pension Plan Investment Board, which impacts all Canadians, and other investors to demonstrate that FPIC is fully integrated into their investment decisions and strategy.”
- Grand Chief Stewart Phillip, Union of British Columbia Indian Chiefs (UBCIC) President
“Respecting Indigenous rights has a multitude of positive outcomes for pension funds and their beneficiaries, because inherent in that respect is an appreciation for the land, the water, the entire ecosystem. It benefits all of us, now and in the future, if our pension funds have policies explaining how Indigenous rights are upheld by their investment and stewardship decisions.”
-Teri Burgess, teacher and a member of the Canada Pension Plan, Ontario Teachers’ Pension Plan, and BC Teachers’ Pension Plan
A table summarizing the presence/absence of UNDRIP and FPIC in pension fund policies is available here.
The full report, Indigenous Rights and Canadian Pension Funds, is available for download here.
Contact information for interview requests:
Adam Scott, Executive Director, Shift
416-347-3858
Patrick DeRochie, Senior Manager, Shift
416-576-2701
Shift Action for Pension Wealth and Planet Health is a charitable initiative that works to protect pensions and the climate by bringing together beneficiaries and their pension funds to engage on the climate crisis. Shift is a project on MakeWay's shared platform, which provides operational supports, governance, and charitable expertise for changemakers.
-30-