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The study was done by Canada Climate Law
Initiative (CCLI), a project of the University of British
Columbia and Toronto's York University.
The research acknowledged the progress made by Canada's biggest
pension fund, including the doubling of its renewable energy
holdings, but found the board's continued fossil fuel
investments revealed a "troubling incrementalism."
Six of CPPIB's 15 private transactions in the past six years
were in fossil fuels, and an earlier analysis found the fund has
invested in 79 of the world's top 200 public oil, gas and coal
companies.
The energy sector has "the strongest of motives to adapt, have
the access to capital to do so and the technology knowhow to
innovate," CPPIB spokesman Michel Leduc said. "The idea, through
divestment, of starving them of capital, would... likely be
harmful or counterproductive."
The report says globally, climate risk is recognized as a
material enterprise risk, impacting supply chains, future cash
flows and disrupting business models across industries. CPPIB's
public and private investments raise questions about its ability
to cope with sudden or unexpected changes in consumer and
investor preferences or in government policy.
CCLI called for the fund, which had C$434 billion in funds under
management as of end June, to set "transparent and aggressive"
targets for a carbon-neutral portfolio.
Fossil fuel producers and services made up 2.8% of CPPIB's
investments as of March 31, from 4.6% two years earlier. CPPIB
CEO Mark Machin told Reuters in May the fund is comfortable with
its energy exposure.
($1 = 1.3159 Canadian dollars)
(Reporting By Nichola Saminather; Additional reporting by Jeff
Lewis; Editing by Cynthia Osterman)
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