QUESTION PERIOD — Finance
Impact of Climate Change
May 3, 2022
My question is for the Government Representative in the Senate.
Senator Gold, the Canada Pension Plan Investment Board, which represents over 21 million Canadian contributors and beneficiaries and manages over $550 billion in assets, submitted a brief to the Standing Senate Committee on Banking, Trade and Commerce last week regarding the low levels of investment in Canada.
In its brief, CPP Investments talks about important considerations related to the challenges posed by climate change. The brief states, and I quote:
Having consistent and accurate climate change-related financial information enhances our ability to make sound investment decisions in the best interests of our contributors and beneficiaries.
Senator Gold, if Canada is to successfully achieve its energy transition, don’t you think it would be important to provide pension funds and long-term capital providers with better tools for assessing investment opportunities in Canada?
Thank you for the question, senator.
The Canada Pension Plan Investment Board is an independent organization that makes its own investment decisions based on its perspective on the economy and market conditions.
The board operates at arm’s-length from the federal and provincial governments, and its mandate is to invest the Canada Pension Plan Fund in the best interests of the 20 million Canadians who contribute to and benefit from the plan.
It is important to note that, as stated in the board’s 2019-20 report, the Canada Pension Plan remains secure as a result of the resilience of the fund. I have been assured that the plan continues to reach its performance objectives and provide a base for Canadians’ retirement even in these unprecedented and uncertain times. I would point out that the board independently made a commitment to establish a plan to achieve net zero by 2050.
In accordance with the mandate letter she received from the Prime Minister, the Deputy Prime Minister and Minister of Finance is supposed to work with the provinces and territories to move toward mandatory climate-related financial disclosures. South of the border, the Securities Exchange Commission is already taking action and has released proposed regulations to require U.S. businesses, among others, to disclose the impact of climate change on their business model.
Senator Gold, would it be possible to know the status of discussions between Ottawa and the provinces? Have discussions begun about making financial disclosures on the impact of climate change mandatory in Canada? If so, has a deadline been set?
Thank you for the question, senator. As I have said here many times, the government continues to take measures to create jobs and support a healthy economy and a healthy environment. To answer your question more directly, I am told that the Deputy Prime Minister and Minister of Finance and the entire government continue to discuss this and various other files with their provincial and territorial counterparts. Beyond that, I have no information to share.
