TORONTO — A climate advocacy group says oil and gas representation on the boards of Canada's big public pensions raise concerns about conflicts of interest.
In a report out Thursday, Shift said that as of June 1, the boards of five of Canada's largest public sector funds had members who are also involved with fossil fuel companies.
The pension-focused group argues that funds have a legal responsibility to act in the long-term best interest of beneficiaries, and that the interests of fossil fuel companies could compete with efforts to manage climate-related risks and reduce emissions.
"It’s easy to see how fossil fuel company directors could potentially find themselves with real or perceived conflicts, and how such conflicts, if not addressed, could undermine prudent pension governance," said Shift executive director Adam Scott in a statement.
The report says CPP Investments, Canada's largest pension fund, has the second-highest representation with three in ten members of its board having ties to the industry.
The fund, which recently dropped its commitment to reach net-zero financed emissions by 2050, wholly rejected the concerns raised by Shift.
"The report is nonsense," said Michel Leduc, global head of public affairs and communications at CPP Investments, in a statement.
"We seek out the most seasoned professionals to undertake a complex role of overseeing the management of a global investment organization ... The energy sector's total GDP contribution to Canadian economic activity is disproportionately significant and that's precisely where you find top governance experience in Canada with a view to the best interests of contributors and beneficiaries."
Other funds the group found with cross-appointments include the Ontario Teachers’ Pension Plan, Public Sector Pension Investment Board, Alberta Investment Management Corp. and Ontario Municipal Employees Retirement System.
AIMCo, where the Alberta government dismissed the entire board last year and installed new members, had the highest industry representation at a third, or two of six members.
The pension fund's members are selected through a "rigorous appointment process and are subject to AIMCo’s Code of Conduct," said spokeswoman Carolyn Quick in a statement.
Other funds did not immediately respond to a request for comment.
Shift said that in total, nine current board members across the funds sit on the boards or executive teams of 12 oil and gas companies, or investment firms focused on the industry.
It notes, however, that the number of boards with fossil fuel representation has gone down from seven to five since its last report in 2022.
The boards of Healthcare of Ontario Pension Plan, Investment Management Corporation of Ontario and CDPQ no longer have fossil fuel representation, it said.
This report by The Canadian Press was first published June 26, 2025.
Ian Bickis, The Canadian Press
