To: Canada Pension Plan (CPP)
Stop the Canada Pension Plan investing our money in Fossil Fuels
The CPP should annually report the carbon footprint of its investments with the objective of bringing them in line with the current and future commitments of the Canadian Government: NET ZERO CARBON EMISSIONS BY 2050
Stop the Canada Pension Plan investing our money in Fossil Fuels.
Why is this important?
“Money Is the Oxygen on Which the Fire of Global Warming Burns”(1)
The government of Canada has committed itself with other nations in the Paris climate talks to reducing annual emissions of carbon into the atmosphere by 30% less than 2005 by 2030 and net zero by 2050. The Canada Pension Plan (CPP) and other government bodies should actively pursue the same objectives.
The CPP controls $392 billion, money that we collectively saved, with a little help from the Feds, during our working days. Those billions are invested with the intention of providing our Canada Pensions, with some inflation, as long as we live to collect them.(2) We count on the investment board of the CPP to do a prudent job of growing the fund. For the most part they have been successful: our pensions have been secure so far.
But climate change is a new threat to our pensions. The CPP has some $4 billion invested in fossil fuels! At the same time as the second largest pension fund in Canada, Quebec's CDPQ, has announced plans to reduce their carbon footprint and increase investments in the low carbon economy.(3)
In the financial world today there are strong warnings against depending on the future value of investments in fossil fuels. The carbon pollution they produce is making a direct contribution to the weather chaos we are now experiencing and which science assures us will become worse in the future if we fail to cut carbon emissions. In short, an investment in fossil fuels is not only morally questionable but also fiscally unsound.
Any money bet on carbon may prove to be worthless in the future. Many voices including those of important bankers, Mark Carney and others, warn that the carbon footprint of investments should be regularly reported by pension funds.(4)
Sign the petition at: https://you.leadnow.ca/petitions/stop-the-canada-pension-plan-investing-our-money-in-fossil-fuels-4
Please sign this petition asking that:
The CPP publish a plan to reduce the carbon footprint of the CPP to net zero by 2050, and publishaaa annual reports of the carbon footprint of the CPP investments.
We expect the CPP plan to meet or exceed Canada’s updated commitments under the Paris Climate Accord as these are announced.(5)
The State of California has legislated that public pension plans must report their own carbon footprint6. We should expect no less transparency from the people managing our public pension assets.
Most fossil fuel companies have no plan for a net zero economy – so cannot be kept in a responsible investment plan – but it is possible for a company to plan for the necessary transition.
As members of the CPP, and other pension plans, for middle class Canadians, our largest carbon footprint is in our pensions and investments. (7)
Below you will find current links that describe why this is a wise and timely recommendation.
1. https://www.newyorker.com/news/daily-comment/money-is-the- oxygen-on-which-the-fire-of-global-warming-burns
This observation from captures the central role of finance in supporting the increase C02 levels.
For every pay period, a deduction is made that is invested on your behalf by the Canada Pension Plan Investment Board (CPPIB). This
primer is written by Friends of the Earth to help you learn about how your money is invested.
3. https://www.corporateknights.com/channels/climate-and- carbon/pension-fund-gets-deadly-serious-climate-crisis- 15759068/
Canada’s second largest pension gets deadly serious about climate crisis by increasing investments in low-carbon assets.
4. https://www.theguardian.com/business/2019/dec/30/firms-must-justify- investment-in-fossil-fuels-warns-mark-carney
Investments make a difference to collectively facing the climate crisis
5. https://pm.gc.ca/en/mandate-letters/minister-environment-and-climate- change-mandate-letter
Implement the Pan-Canadian Framework on Clean Growth and Climate Change, while strengthening existing and introducing new greenhouse gas reducing measures to exceed Canada’s 2030 emissions reduction goal and beginning work so that Canada can achieve net-zero emissions by 2050.
6. https://www.pionline.com/article/20140925/ONLINE/140929924/calpers- pledges-to-disclose-carbon-footprint-in-investment-portfolio
The new law in California will require Calpers (the California Public Employees’ Retirement System), which oversees $360bn in assets, and Calstrs (the $228bn California State Teachers’ Retirement System) to report publicly on the climate- related financial risk of their public market portfolios.
The high Carbon Footprint of Investments. Relevant to both individual investment and institutional investments such as Pension Funds and Endowments.