2024 Canadian Pension Climate Report Card

Fossil Fuel Exclusions

As part of the 2024 Canadian Pension Climate Report Card, Shift identified the emissions reduction targets, additional climate targets, fossil fuel exclusions, fossil fuel investments, and Indigenous rights policies of 11 Canadian pension managers. Fossil fuel exclusions (or lack thereof) appear below.

Information is current to December 31, 2024. View details and references in the pension fund analyses and in the pdf version of the table. Shift also researched the fossil fuel exclusions of the international pension funds included in the report (ABP and AP2). You can view the exclusions from a selection of international funds here.

Pension Manager Fossil Fuel Exclusion Score Exclusions Additional Information
Pension managers with partial exclusions (ordered by Fossil Fuel Exclusion score).
CDPQ B- Coal
Exclusion and divestment of thermal coal mining.
Exclusion on new thermal coal power generation projects.
By 2030: divest of thermal coal projects or companies in industrialized countries that are not aligned with a 1.5°C trajectory.
By 2040: divest of thermal coal projects or companies in emerging countries that are not aligned with a 1.5°C trajectory. 		Completed exit from coal mining (2022).
Oil
Exclusion on oil production, including extraction and refining. Applies to new operational or expansion projects and to companies in the sector.
Exclusion on new oil pipelines. Applies to both public and private companies and to projects.
Completed exit from oil producers (2023).
Gas
No exclusions.
IMCO C+ New Fossil Fuel Investments
Although there are loopholes, caveats, and no commitment to fossil fuel phaseout, IMCO appears to have an exclusion, first reported as “climate guardrails” in its 2022 Climate Action Plan, on most new direct investments in fossil fuels across all asset classes. 		In 2024, this exclusion was most clearly articulated not by IMCO but by its largest client, the Ontario Pension Board (OPB):

"Where it can meaningfully influence or control investable assets, IMCO has stated that it will not make new investments in fossil fuel assets without current or credible plans for interventions such as carbon capture and storage or carbon capture, utilization and storage or equivalent technologies that substantially reduce the amount of emissions throughout the life cycle, in line with appropriate global, science-based scenarios."
Coal
Exclusion on companies with over 10% of revenue (as measured on a three-year rolling basis) derived from thermal coal mining.		 IMCO’s 2022 Climate Action Plan said that it would “limit exposure” to thermal coal mining and Arctic oil and gas production, and then clarified the 10% revenue thresholds in an undated ESG Screening Guideline available on IMCO’s website in 2023 but which appears to have since been removed. OPB’s 2022–2023 ESG Report, published in April 2024, stated that “currently identified” screens included the 10% threshold wording.
Oil and Gas
Exclusion on companies with over 10% of revenue (as measured on a three-year rolling basis) derived from Arctic oil and gas production.
HOOPP C- Coal
By 2025: Exclude new direct private investment in thermal coal.		 Exceptions may be made for "high-emitting assets with credible and fully costed decarbonization plans."

Since releasing its climate strategy, HOOPP has made "no new direct investments in private thermal coal or oil exploration and production companies.”
Oil
By 2025: Exclude new direct private investment in oil exploration and oil production.
Gas
No exclusions.
UPP C- Coal
Thermal coal-based electrical power generation:
Exclusion on companies with any of:
-coal-based electrical power generation capacity equal to or greater than 5,000 MW.
-coal-based electrical power generation equal to or greater than 10% of total electrical power generation.
-coal-based electrical power generation revenue equal to or greater than 10% of total revenue.
-coal-based electrical power generation installed capacity equal to or greater than 10% of total electrical power generation capacity.
-coal power expansion projects.

Mining thermal coal:
Exclusion on companies with any of:
-revenue from mining and selling coal to external parties equal to or greater than 10% of total revenue.
-thermal coal reserves equal to or greater than 50 million metric tons.
-thermal coal production equal to or greater than 10 million metric tonnes annually.
-coal mining expansion projects.
Oil and Gas
No exclusions. 		In December 2024, UPP said that it is reviewing information gained through engagements with 11 oil and gas companies and reiterated its 2023 commitment to "refine UPP's position" in these companies "as appropriate".
OMERS D Coal
Exclusion on direct investment in companies that generate more than 25% of revenues from thermal coal.		 Exceptions: "This would not prohibit investments in assets with thermal coal revenues that have decarbonization plans that qualify for the transition sleeve."
Oil and Gas
No exclusions.		 OMERS’ vice president of sustainable investing told Net Zero Investor in September 2024 that the pension manager has not invested in new privately-held oil and gas assets “in some years,” and that oil and gas divestment is “something we may consider” in the future, “based on what's happening in the market.”
Pension managers with no disclosed fossil fuel exclusions.
AIMCo F No fossil fuel exclusions.
BCI F No fossil fuel exclusions.
CPPIB F No fossil fuel exclusions. CPPIB made at least $3.3 billion in new fossil fuel investments in 2024.
OPTrust F No fossil fuel exclusions.
OTPP F No fossil fuel exclusions. OTPP appears to be screening for investments in fossil fuels and related infrastructure, for example by its stipulation that portfolio companies must set credible net-zero targets, including scope 3 where material, within two years of OTPP’s investment.
PSP F No fossil fuel exclusions. PSP committed in 2022 to halving its $7.8 billion exposure to “carbon-intensive assets without credible transition plans” by 2026.

View detailed climate scores and analyses