Why is the Canadian Government Bankrolling an Investment Summit With Your Pension Funds?

This week, Mark Carney is co-hosting an Investment Summit in Tkaronto alongside the Canadian Pension Plan (CPP) and Public Sector Pension Investment Board (PSP Investments). The Canadian Government has stated that they “will catalyze $1 trillion in Canadian investments over the next 5 years.” 

When some of the richest private equity firms and CEOs in the world, such as BlackRock’s Larry Fink and Blackstone’s Jon Gray, are convening at Carney’s Investment Summit it is abundantly clear that Canada has a price tag and Carney will always choose profit over people. 

Pension funds are meant to exist at an arms length away from the government. So, WHY are our pension fund managers so eager to jump into business with Mark Carney and his administration? 

The Canadian Pension Plan, or CPP, is a social security net that most Canadians (besides those who live in Quebec) start paying into at 18 with contributions from their employment earnings. This sounds great in practice; a portion of your earnings automatically saved for retirement so you can rest assured that you will be financially protected when you retire.

But what if there is something more sinister happening with our pension funds? 

We all pay into CPP,  but we don’t have any say in how the funds are managed or what they’re being invested into. Last summer, the CPP Investment Board decided to drop its 2022 net-zero commitments entirely - a commitment that was intended to align CPP’s entire investment portfolio with net-zero greenhouse gas emissions by 2050. 

In addition to rolling back environmental commitments, Shift Action for Pension Wealth and Planetary Health has reported that, out of 11 major Canadian pension managers, over half of them have zero policies around Indigenous rights. 

If pension funds are meant to support our futures by factoring in long-term sustainability, this becomes nearly impossible when our funds are invested into portfolios that commit to the very projects that the International Court of Justice (ICJ) ruled States are legally responsible for phasing out. 

All of this is especially concerning when we know two major pension boards are co-hosting an Investment Summit with Mark Carney this week - one that is specifically discussing, investing and committing to extractive projects that already violate Indigenous rights.

So, what are we to do?

Is $1 trillion over 5 years worth a planet that’s unlivable for us and everyone that comes after? 

Thanks to grassroots organizing efforts, movement is already happening and there are several opportunities for each of us to tap in.

For the first time in history, a group of youth are suing the Canadian Pension Plan Investment Board (CPPIB) for failing to protect their pensions from undue climate risk.  

The Carney administration is also being sued for being unwilling to update Canada’s climate plan to meet any emissions reduction targets. 

This week, environmental groups are hosting a counter-summit The Many vs. The Money with events happening across Tkaronto. The counter-summit and protest will also build momentum for upcoming mobilizations like the March for Migrant Justice (September 20) and the Grassy Narrows River Run (September 23).

CPPIB is also required to host public meetings in every province (except Quebec), every two years. This is the only chance the public has to ask questions in person about how CPPIB is managing their retirement savings. The fund has announced the first two dates of its public meetings:  October 6th in Vancouver, and October 8th in Ottawa. If you live near these cities and want to get involved, reach out to info@shiftaction.ca for more information.

Indigenous Climate Action recently announced our latest report titled "Energy Sovereignty: An Indigenous Framework for Responsible Energy Investment". This report introduces an “investment ready” framework for assessing the readiness of both established and emerging clean energy projects, with a particular focus on those led by, or developed in full partnership with, Indigenous Nations.

This fall, Indigenous Climate Action and Shift Action will be joining forces to host a virtual teach-in on the CPP. Keep an eye on our channels for registration opening soon.