Report says there has only been limited improvement in the past three years
Despite growing climate risks, ties between Canadian pension fund boards and the fossil fuel industry remain strong, with only slight improvement over the past three years.
According to a new report from Shift, following on from its 2022 publication, these overlapping interests raise serious concerns about conflicts that could jeopardize pension funds’ ability to manage climate-related financial risks that directly impact the retirement security of millions of Canadians.
As of June 1, 2025, directors with current or recent ties to the fossil fuel industry sit on the boards of five of Canada’s biggest public sector pension funds:
- Canada Pension Plan Investment Board (CPPIB)
- Ontario Teachers’ Pension Plan (OTPP)
- Public Service Pension Investment Board (PSP)
- Alberta Investment Management Corporation (AIMCo)
- Ontario Municipal Employees Retirement System (OMERS)
CPPIB (30%) and AIMCo (33%) stand out for having the highest concentrations of fossil-linked directors, while at OTPP, two out of ten board members currently hold directorships in five different fossil fuel companies.
Shift identified nine current directors across major pension funds with fossil fuel affiliations. Together, they sit on the boards or executive teams of 12 fossil-focused companies, including firms that:
- Are expanding oil and gas infrastructure,
- Lobby aggressively against meaningful climate policy,
- And have been fined or sanctioned for environmental violations.
There has been some progress since Shift’s 2022 analysis with two fewer pension boards that are fossil-linked.
The Healthcare of Ontario Pension Plan, Investment Management Corporation of Ontario, and Caisse de dépôt et placement du Québec have removed directors with fossil fuel ties.
Shift says that the entities responsible for appointing pension directors, including governments, unions, and employers, must introduce stronger checks and transparency requirements. And pension funds must also take more responsibility for who sits at their board tables.
“Pension boards face difficult governance decisions to reduce the climate impact of their investments and reduce fund exposure to risky stranded assets in the fossil fuel sector,” said Adam Scott, Executive Director of Shift: Action for Pension Wealth & Planet Health. “Climate-related board decisions from funds managing hundreds of billions in assets have major implications for fossil fuel companies. 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.”
