Respecting Indigenous rights is essential to both reconciliation and climate action. Yet many of Canada’s largest public pension funds continue to invest in projects that may impact Indigenous lands and waters without clear commitments to uphold Indigenous rights. Pension funds must adopt transparent policies that ensure their investments respect Indigenous peoples’ rights and consent.

This issue is especially urgent as governments and industry pressure pension funds to invest in LNG terminals and pipelines that risk violating Indigenous rights and locking in decades of additional climate pollution.

Indigenous rights are basic human rights 

The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) enshrines the right to dignity, self-determination and equality for Indigenous peoples as an essential human right. It also recognizes the right to self-governance and explicitly requires free, prior and informed consent for activities that may affect Indigenous peoples or their territories. 

In addition, the Truth and Reconciliation Commission’s Calls to Action direct Canadian investors and businesses to commit to meaningful consultation, build respectful relationships, and obtain the free, prior and informed consent of Indigenous peoples before proceeding with economic development projects. This is particularly relevant for resource extraction and land-use projects, as projects financed by pension funds can negatively impact Indigenous peoples’ lands and waters.

Indigenous rights are central to meaningful climate action

Indigenous communities have long-standing, sustainable relationships with their lands and waters, protecting vital ecosystems. Safeguarding Indigenous rights is key to preventing deforestation, land degradation and ecosystem destruction. Indigenous communities are disproportionately affected by the impacts of climate change, and empowering these communities helps create more equitable and effective climate policies.

Few Canadian pension managers have committed to respect Indigenous rights

Yet Shift’s analysis reveals that only a handful of Canada’s largest pensions have taken steps to develop an Indigenous rights and reconciliation framework in their investment processes. 

Failing to implement an Indigenous rights policy creates serious financial, legal, reputational and climate risks. The Coastal GasLink pipeline, for example, faced delays, cost overruns, legal challenges and public controversy over environmental infractions and violations of the rights of the Wet’suwet’en nation. 

Now, pension funds are facing renewed pressure to finance LNG terminals and pipelines despite the significant risks these projects pose to Indigenous rights, the climate and retirement security.

Take action now: call on our national pension manager to adopt a transparent policy to respect the rights of Indigenous Peoples in its investment decisions.

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