And the greenwashing award goes to: New report grades Canada’s pension funds on climate

A recent report reveals that Canada’s major pension funds are largely failing to align their investments with science-based climate goals, leaving beneficiaries’ retirement security vulnerable to climate risks. While some funds have made incremental progress, the majority lack the ambition, detail, and transparency necessary to support a safe climate future. This gap between current practices and international best practices highlights a systemic failure to protect long-term savings from the financial implications of the climate crisis. The study highlights significant instances of greenwashing, awarding top-tier recognition to several large pension managers for allowing portfolio companies to exaggerate their environmental credentials. These funds possess the resources to address such practices but currently enable misleading claims that obscure the true carbon footprint of their investments. By failing to demand rigorous accountability, these institutions inadvertently support companies that are not genuinely transitioning away from fossil fuels, thereby undermining the integrity of their own climate commitments. Transparency remains a critical deficiency, as most funds do not disclose the extensive greenhouse gas emissions associated with their fossil fuel holdings. This lack of information prevents beneficiaries from assessing the true risk exposure of their savings. The report underscores the urgent need for mandatory climate-related financial disclosures to ensure pension funds act in the best interests of their members, forcing a rapid phaseout of high-emission assets to secure both financial stability and a livable planet.

Source: nationalobserver.com
Published on 2023-01-19

And the greenwashing award goes to: New report grades Canada’s pension funds on climate

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