Alberta’s largest labour organization questions use of pension funds to support energy industry

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Province’s public pension manager AIMCo insists its investment of nearly $115-billion is on par with funds around the world

This translation has been automatically generated and has not been verified for accuracy.Alberta’s largest labour organization says public-service pensions are being used to prop up the province’s struggling fossil fuels industry at a time when many large investment funds are moving away from the sector.

Earlier this year, one of the world’s largest investment groups, BlackRock, announced it would put climate and sustainability at the centre of how it decides to invest its $7-trillion fund. A survey of institutional investors by the University of Texas found more than half the managers of 439 banks, insurers and fund managers say climate risks are already a factor in their investment decisions.

AIMCo spokesman Denes Nemeth said a third measure – carbon output per revenue generated – shows its risk is falling. The calculation concludes AIMCo is generating 194 tonnes of carbon for every million dollars its investments earn, down from 202 tonnes five years ago.No consensus exists on how to measure investors’ carbon exposure, but Nemeth said an international business group on climate risk disclosure uses the emissions-per-revenue method.

Still, parts of AIMCo’s portfolio are heavily carbon-intensive. In 2015, Alberta’s then-New Democrat government announced that up to three per cent of the province’s heritage fund, managed by AIMCo, would be invested to help Alberta’s economy grow. The Alberta Federation of Labour, in a report that was to be released Wednesday, says that investing trend is no accident.

 

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Gosh, didn't it used to be that the energy industry supported pensions for Albertans?

Seems odd that they are silent on the CPPIB investments in Chinese coal plants if this is such a concern for them

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