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PRI said the legal framework even provides for some cases where sustainability impact goals can be pursued “for reasons other than achieving financial return goals.”Article content “Our … analysis shows that many Canadian investors may be interpreting their legal duties in ways that discourage them from considering sustainability impact goals, even where pursuing such goals can help them discharge their duty to achieve financial returns,” said the report, which was done in partnership with the United Nations Environment Programme Finance Initiative and the Generation Foundation.
While Fink has been outspoken about the role of environmental and social goals in investing, some institutional investors have pushed back against blanket demands for climate action and disclosure. Keohane pointed out that one of PRI’s partners in the report, Generation Foundation, has a stated goal to “pursue a wholesale shift in capital flows to drive a net zero economy.”
“One of the main reasons for the success of the Canadian pension model has been the governance structure which has allowed the Canadian funds to remain independent and free of government interference, which enables them to make decisions which are in the best interests of the members of the pension plan.”
The same year, CPPIB’s incoming chief executive John Graham said blanket divestment was “essentially a short on human ingenuity” and pledged to invest in the entire energy ecosystem, including continuing to invest and oil and gas assets while also backing companies transitioning to lower carbon output.
As for the current backlash against mandating action on climate and other ESG factors, Pirovska said she believes it stems from “quite a lot of misunderstanding” about what responsible investment is.Article content
How can you stop mother nature? Seriously the carbon levels changed over several millenia without human interaction
Nope, returns from oil and gas are higher than most industries. Their obligation is to grow the fund, not politicize investment decisions.