CPPIB’s once-a-year report greenwashing expenditure procedures, states watchdog

In the once-a-year report, the CPPIB mentioned it wouldn’t divest from fossil fuel property, but would proceed to make investments in and exert affect on investee companies to encourage the easy changeover away from fossil gas reliance. In accordance to Shift’s assertion, this supports the CPPIB’s stewardship actions.

Read: CPPIB returns 1.3% in fiscal 2023, bracing for headwinds in advance

“But the CPPIB continues to disregard the scientific consensus that accomplishing internet-zero emissions by 2050 demands an rapid conclusion to fossil gas growth and the simple truth that transition inherently implies phasing out fossil fuels, which do not have a lucrative or credible pathway to decarbonization.”

Change also highlighted the once-a-year report’s claim that the CPPIB held $79 billion in green and transitional belongings, noting what is meant by the term transitional assets is unclear. “The CPPIB’s reporting also tends to make it not possible — most likely intentionally — for Canadians to fully grasp how considerably of our national retirement fund is invested in fossil fuels compared to renewable vitality and other local weather answers.”

The watchdog corporation also mentioned the CPPIB doesn’t variable carbon emissions reductions or attaining local climate targets into its team compensation construction. Other public sector pension expense organizations, which includes the Caisse de dépôt et placement du Québec and the Ontario Teachers’ Pension System, have adopted the exercise of incentivizing emissions reductions and environmental targets.

The once-a-year report involved references to the use of carbon credits, such as credits confirmed in accordance with Verra’s Verified Carbon Common. In its assertion, Shift cited a latest analyze that located a important portion of these confirmed credits are worthless. “This method of buying questionable offsets relatively than creating true-environment emissions reductions is a squander of cash and an example of greenwashing and will make it more difficult for CPPIB to realize its climate targets in the prolonged expression.”

Read through: Watchdog accusing CPPIB of greenwashing acquisition of oil organization

Change also referenced the CPPIB’s acquisition of a 49 for each cent stake in Aera Power, a petroleum producer liable for 25 per cent of California’s fossil gas manufacturing. The go was highlighted in a video information from John Graham, the organization’s main govt officer, launched together with the annual report.

“It is up coming-amount greenwashing for the CPPIB to feature an oil and gasoline company as a internet-zero investment decision from a backdrop of forests and wind farms in a marketing video,” said the Shift statement. “The idea that renewable power can be made use of to decarbonize oil and gasoline generation is absurd, totally ignoring scope 3 emissions and falsely relying on high priced, non-viable technologies that just can’t deliver required emissions reductions, these as carbon capture utilization and storage.”

The CPPIB did not reply to requests to comment on Shift’s assertion.