The Canada Pension Plan Investment Board (CPPIB) Annual Report for 2020 shows a position of $141 million in Chinese coal.
The CPPIB’s investment includes $1 million in Jiangsu Guoxin Corp. Ltd, a Chinese coal distributor and a $42 million stake in China’s largest state-owned coal mining company, China Shenhua Energy Co. Ltd, reports The Energy Mix.
“It’s completely offside with Canada’s commitments to the Powering Past Coal Alliance and its domestic goal to retire coal-fired generation. […] It’s completely offside with all of Canada’s climate commitments. And it’s a red flag for Canadians to be worried about their pension savings.”
“If you understand climate change, then you understand that coal is an incredibly high-risk investment in any form It’s high-risk because it’s the leading cause of the climate crisis, and therefore a key target for elimination in climate policy. It’s ripe for disruption from new technology that is rapidly out-competing coal in electricity markets. […]
“And “it’s deeply unethical. Anybody who understands the consequences of burning coal in our climate truly would never make such an investment. So it raises a big question for me about whether CPPIB actually understands the climate crisis at all”, Scott said in an interview with The Enegy Mix.
Growing voices in the investment community have raised alarms about investing in China, a totalitarian regime performing genocide on its Uighur population. Investing in China’s coal industry, a high-emissions and non-renewable form of energy that largely contributes to climate change could be considered to double the unethical nature of the CPPIB’s investment.
Canada has numerous domestic investment opportunities for ethical energy ventures that would largely be in the better interest of Canadian citizens whose pension is currently invested in unethical Chinese energy.