2025 Canadian Pension Climate Report Card
Public Sector Pension Investment Board (PSP)
PSP’s overall score has fallen to a C minus, with scores on four indicators decreasing this year.
Despite its failure to commit its portfolio to net-zero by 2050, PSP had in 2022 released a detailed climate strategy and committed to interim climate targets. However, in 2025, PSP is communicating less urgently about the climate crisis and its climate strategy is becoming stagnant. With no interim targets beyond March 2026 (the end of PSP's fiscal year), PSP has not yet indicated its future intentions for protecting its portfolio from climate-related risks.
PSP’s board remains entangled with the fossil fuel industry. In each of the years Shift has tracked fossil-fuel board entanglement, PSP has had a director who concurrently serves on the board of Imperial Oil; in 2025, this person became Imperial Oil’s lead director. It is unclear how this director can, without creating potential conflicts of interest, fulfill their fiduciary duty to plan members by overseeing PSP’s climate strategy while also fulfilling legal obligations to the shareholders of a fossil fuel company.
Finally, unlike a number of its Canadian peers, PSP has placed no exclusion on new investments in fossil fuels.
OVERALL SCORE
C-
Climate Urgency
C+
Climate Engagement
C
Climate Integration
C+
Fossil Fuel Exclusions
F
Interim Targets
C
Paris-Aligned Target
F
PSP Investments is the pension manager for the active and retired employees of Canada’s federal government, including federal public servants, the RCMP, and the Canadian Armed Forces and Reserve Force. As of PSP's 2024 annual report, it reported approximately 900,000 contributors and beneficiaries. PSP is a Crown corporation sponsored by the Government of Canada.
Assets Under Management (AUM): $299.7 billion (March 31, 2025)
The 2025 Canadian Pension Climate Report Card analyses, assesses and ranks the progress made by eleven of Canada’s largest pension managers and two international pension managers in their approach to climate risk and investment decisions as they relate to the climate crisis. The report is based on publicly available information to December 31, 2025. Cover image credit: Jim Peaco / National Park Service.
View another pension fund manager
