{"id":17572,"date":"2019-11-19T10:00:51","date_gmt":"2019-11-19T15:00:51","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/cppib-critiqued-for-investments-in-carbon-intensive-companies-139058"},"modified":"2019-11-19T10:00:51","modified_gmt":"2019-11-19T15:00:51","slug":"cppib-critiqued-for-investments-in-carbon-intensive-companies","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/11\/19\/cppib-critiqued-for-investments-in-carbon-intensive-companies\/","title":{"rendered":"CPPIB critiqued for investments in carbon intensive companies"},"content":{"rendered":"
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Staff<\/span> | November 19, 2019<\/p>\n

The Canada Pension Plan isn\u2019t taking sufficient action to address climate change, according to a new report by the Corporate Mapping Project and the Canadian Centre for Policy Alternatives.<\/p>\n

Specifically, the report said the CPPIB isn\u2019t investing with the goal of limiting the global rise in temperature to 1.5 degrees Celsius.<\/p>\n

\u201cWithin its public equities portfolio, the CPPIB has over $4 billion invested in the top 200 publicly traded fossil fuel reserve holders,\u201d said James Rowe, associate professor in the University of Victoria\u2019s School of Environmental Studies and a co-investigator with the Corporate Mapping Project, in a press release. \u201cTo stay within 1.5 degrees, these companies can extract only 71 billion tonnes of carbon dioxide, yet the companies the CPPIB is invested in have 281 billion tonnes in reserve, meaning they have almost four times the carbon reserves that can be sold and ultimately burned to stay within 1.5 degrees.\u201d<\/p>\n

Read: CPPIB sustainability report shows increased investments in renewable energy<\/a><\/strong><\/p>\n

The report argued the continued profitability of some of the companies in which the CPPIB invests depends on their overshooting appropriate carbon budgets.<\/p>\n

It also suggested the CPPIB\u2019s disclosure efforts are insufficient, in terms of exactly how it integrates environmental, social and governance issues into its investment processes. In particular, it noted the CPPIB doesn\u2019t disclose the ESG practices of external management companies it works with, which comprise a hefty chunk of its overall portfolio.<\/p>\n

The report recommended that the CPPIB take three actions. First, it should \u201ccarry out a portfolio-wide risk analysis in the context of the climate emergency and disclose all findings to pension members.\u201d Second, it should freeze new investment in fossil fuels, develop a plan to remove high-risk companies, such as coal producers, from its portfolio and divest sector-wide, reinvesting the capital in renewable energy. And finally, the report said the CPPIB should advocate for strong climate policy.<\/p>\n

\u201cWhile pension plans are incapable of preventing such changes on their own, managers of these plans can become strong advocates for climate policy that is in alignment with their intergenerational fiduciary duty,\u201d it said.<\/p>\n

The CPPIB was unable to comment by the time of publication.<\/p>\n

Read: Canadian actuaries calling for mandatory financial reporting around climate change<\/a><\/strong><\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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