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REPORT: Canadian pension fund investment managers’ entanglement with fossil fuel industry raises conflict of interest concerns

By Adam Scott and Patrick DeRochie - Shift Network, May 5, 2022

New analysis finds 80 Canadian pension managers with 124 different roles at 76 fossil fuel companies, raising questions from beneficiaries about fiduciary duty and pension administrators’ potential conflicts of interest on climate-related investment decisions. 

Shift Action for Pension Wealth and Planet Health’s May 2022 report, Canada’s Climate-Conflicted Pension Managers: The Oil and Gas Insiders Overseeing Canadians’ Retirement Savings, reveals the deep entanglement between the fossil fuel industry and directors, trustees and investment managers at Canada’s largest public pension funds. 

The overlap raises serious questions from beneficiaries about their pension administrators’ ability to objectively manage climate-related financial risks and make critical climate-related investment decisions – when the pension administrators are so deeply entangled with an industry whose products are the primary cause of the climate crisis, whose bottom line depends on the continued production of climate-damaging products, and that has a long and ongoing legacy of obstructing efforts to cut carbon pollution.

The analysis finds that among Canada’s ten largest pension funds, which together manage more than $2 trillion in assets:

  • 80 different pension directors, trustees, executives and senior staff currently hold or previously held 124 different roles with 76 different fossil fuel companies. 

  • This includes nine current pension fund directors or trustees that currently hold 13 roles on the board of directors of 12 different fossil fuel companies, and 56 senior staff or investment managers at pension funds who hold 76 different corporate director roles at 39 different fossil fuel companies. 

  • Seven of the ten pension funds have at least one board member who simultaneously sits on the board of a fossil fuel company. 

  • In some cases, over a quarter of the pension fund’s board has direct connections to the oil and gas industry.

The best long-term interests of pension fund beneficiaries are not aligned with the financial interests of shareholders of fossil fuel companies. A pension director who is also a corporate director of a fossil fuel company could find themself with real or perceived conflicts of interest between their fiduciary duty to invest in the best long-term interests of pension beneficiaries, and their simultaneous legal obligation to act in the financial interests of the fossil fuel company on whose board they sit.

Press Release

Read the text (Link).

Webinar: Investing in Workers for a World Beyond Fossil Fuels

California Climate Jobs Plan Continues to Gain Union Endorsements

By Steve Ongerth - IWW Environmental Union Caucus - March 11, 2022

The California Climate Jobs Plan, popularly known as "the Pollin Report"--which has been described as a "sholvel ready just transition/Green New Deal" plan--and was immediately endorsed by nineteen California based labor unions, including three United Staeelworkers Union locals which primarily represent refinery workers upon its unveiling has since gained the support of many additional unions. The following unions (so far) have since endorsed the plan (knowing that while the plan isn't perfect, it's at least a step in a positive direction):

November 2021:

  • Inland Boatmen's Union (IBU), SF Bay Region (an affiliate of the ILWU)
  • Railroad Workers United
  • IWW San Francisco Bay Area General Membership Branch

February 2022:

  • International Lonshore and Warehouse Union (ILWU) Northern California District Council (NCDC)

The council is composed of delegates from the following ILWU Locals:

  • ILWU Local 6 (Bay Area Warehouse)
  • ILWU Local 10 (Bay Area Longshore)
  • ILWU Local 34 (Bay Area Shipping Clerks)
  • ILWU Local 75 (Bay Area Dock Security Guards)
  • ILWU Local 91 (Bay Area “Walking Bosses”)
  • ILWU Local 14 (Eureka; combined)
  • ILWU Local 18 (Sacramento; ditto)
  • ILWU Local 54 (Stockton)
  • Bay Area IBU (already endorsed individually)
  • and the pensioners from all of the above.

However, the NCDC's endorsement does not automatically mean that each of its constituent locals have individually endorsed the plan.

The more unions that endorse and take an active role in motivating the proposal either by lobbying at the California state level, engaging in public actions to promote the goals of the plan, or even engaging in workplace actions (whereaver relevant and practiceble), the greater chances the plan has of being realized.

(That said, it should be noted that this is not an IWW organizing project, although IWW members have been active in securing additional union endorsements).

A sample resolution (a copy of the text adopted by the SF Bay Area IBU) is available here.

Download the plan - here.

Invest in Transit Equity, Invest in Transit Workers

By Julie Chinitz, et. al - Alliance for a Just Society, the Labor Network for Sustainability, and TransitCenter, February 2022

On Transit Equity Day 2022, Transit Riders and Workers Join Together to Call for Prioritizing Workforce Investments

A new report by the Alliance for a Just Society, the Labor Network for Sustainability, and TransitCenter shows how inadequate investments in our public transit workforce have resulted in service cuts in cities, towns, and states across the country. Investments in the public transit workforce are urgently needed to boost economic opportunity and racial equity in our communities.

The report, released on Transit Equity Day, February 4, 2022, notes how inadequate investments in job quality, the aging transit workforce, and the effects of the COVID-19 pandemic have reduced transit staffing levels, and left many public transit systems unable to meet the needs of the communities they serve. That’s a problem for the millions of people in cities and rural communities across the country who rely on public transit every day.

The report also includes recommendations to help rebuild a strong transit workforce in communities across the country. The report emphasizes that the starting point to addressing any workforce problem is to engage in a dialogue with transit employees themselves, through their democratically elected union representatives, as well as riders and other community stakeholders. Operators, maintenance employees, and other transit workers know better than anyone how to improve job quality in order to hire and retain a skilled, stable and professional transit workforce. Labor-management negotiations can forge the most appropriate policy solutions to providing safe and healthy environments for transit workers; improving their working conditions; expanding access to good transit jobs; and ensuring workers have the skills and training needed to adapt to modernization efforts like electrification.

Read the full report below, including detailed recommendations for building a stable, skilled, and experienced public transit workforce.

About the Alliance for a Just Society

The Alliance for a Just Society’s National Campaign for Transit Justice is working to ensure just transit drives the future of the economy. Started in response to the emergency faced by public transit systems around the country during the pandemic, we mobilize riders, transit workers, small businesses, and transit agencies to #SaveTransit. Learn more at allianceforajustsociety.org

About Labor Network for Sustainability

Founded in 2009, the Labor Network for Sustainability sets out to be a relentless force for urgent, science-based climate action by building a powerful labor-climate movement to secure an ecologically sustainable and economically just future where everyone can make a living on a living planet. Since 2018, LNS has convened the Transit Equity Network joining together transit riders, workers, environmental and environmental and climate justice organizations to host actions on Feb. 4, Transit Equity Day, recognizing public transit as a civil rights, workers’ rights and climate justice issue. Learn more at www.labor4sustainability.org. Learn more about Transit Equity Day.

About TransitCenter

TransitCenter is an applied research and advocacy foundation dedicated to improving transit in major US cities. Learn more at transitcenter.org.

Read the text (PDF).

A Green New Deal for Transportation: Establishing New Federal Investment Priorities to Build Just and Sustainable Communities

By Yonah Freemark, Billy Fleming, Caitlin McCoy, Rennie Meyers, Thea Riofrancos, Xan Lillehei, and Daniel Aldana Cohen - Climate and Community Project, February 2022

The transportation system is the connective tissue that transforms pockets of communities into a networked society. It links home, school, work, and play. It drives economic growth, social mobility, and employment opportunities. 

The transportation sector currently emits more carbon pollution than any other sector in the US economy. The automobiles we drive, the trucks, trains, and ships that deliver our goods, the airline flights we take, and other transportation activities account for about 28 percent of US greenhouse gas emissions. The passage of President Biden’s Infrastructure Investment and Jobs Act is replete with new funding for state and local highway expansion, and seems likely to further exacerbate the sector’s emissions. More than 120 years after electric vehicles briefly achieved popularity in the 1900s, petroleum products still power over 91 percent of today’s transportation system. Americans collectively drive more than three trillion vehicle miles per year, most of those as a single driver in an automobile. Life in the United States is organized around personal automobiles powered by petroleum. For a Green New Deal in transportation to be possible, that has to change. A climate-safe future requires a swift and just decarbonization of the transportation sector, a major expansion of public and active transportation, and the parallel decarbonization of the electricity sector.

Transportation often exacerbates social inequity and racial injustice within and between communities. Its infrastructure speeds the movement of those who are better off, to the detriment of those who are most in need. In far too many communities, governments, planners, and engineers prioritize vehicles over people and efficiency in travel time at the cost of quality of life. Choices made by elected officials and transportation agencies about how funds are allocated at the federal, state, and local levels have played a major role in reinforcing these outcomes over the past century.

In 2021, Congress passed the Infrastructure Investment and Jobs Act – the centerpiece of President Biden’s Bipartisan Infrastructure Framework. It provides substantial new funds for intra-city public transit, intercity passenger rail, and new electric vehicle charging infrastructure. It also includes $7.5 billion in new discretionary funding for innovative transit projects in the RAISE program (formerly BUILD and TIGER), along with new incentives for roadway repair and maintenance. However, the bill also allocates $350 billion towards new road and highway projects that will be administered by state and local departments of transportation. Much of this funding is likely to be spent on highway expansion projects. In short, the Infrastructure Investment and Jobs Act is poised to invest in a small number of innovative, low-carbon public transit projects alongside a massive new investment in roads and highways – locking in higher emissions for the sector than those that predated the bill. In other words, the Infrastructure Investment and Jobs Act could invest dramatically more on highway expansion than on innovative, low-carbon public transit projects. That dynamic has to change.

In this report, we propose a series of critical opportunities for new transportation-related policies to improve equal access, mobility, and opportunity in our transportation system, reduce emissions, support global climate cooperation, and develop long-lasting infrastructure and workforce development strategies on a changing planet. We argue for a move away from past policies that encouraged the release of greenhouse gases and other air pollutants while furthering social inequity. Crucially, this report aims to shift the conversation surrounding the transportation sector and decarbonization from focusing exclusively on electric vehicles and high-speed rail to addressing the many disparate parts of America’s transportation system. This includes a focus on intra- and intercity rail in addition to high-speed rail; an approach to electric vehicles that pairs supply-side policies (e.g. manufacturing tax credits) with a more progressive demand-side approach that benefits low and middle-income households with few public transit options instead of wealthy, coastal city residents who tend to purchase high-end luxury electric vehicles (e.g. Tesla).

Instead, the transportation system should be viewed as a strategic lever for investing in good-paying low-carbon jobs, justice, and a decarbonized economy. We build on the important progress Congress members have made through their introduction of bills such as the Moving Forward Act to identify a series of policies that would further that ambition.

Read the text (PDF).

We Will Build the Future: A Plan to Save the Planet

By various - Tricontinental: Institute for Social Research, January 10, 2022

The most scandalous fact of the current period is that 2.37 billion people are struggling to eat. Most of them are in developing countries, but many are in advanced industrial states. Governments in developed countries say that there is not enough money to abolish hunger or any of the other afflictions of the modern era, whether it be illiteracy, ill health, or homelessness. However, during the pandemic, the central banks of these countries conjured up $16 trillion to protect the wavering capitalist system. Resources were readily available to save firms, but not to save hungry people: that is the moral compass of our times.

In this period, the research institutes of the capitalist states have set up new entities and published a slew of reports offering supposed remedies to ‘save capitalism’. Among these new institutions are the Council for Inclusive Capitalism (whose partners include the Bank of England and the Vatican) and the B Corporation Movement. The World Economic Forum (WEF) and the Financial Times have made the case for a ‘great reset’ to make capitalism ‘more inclusive’. ‘The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world’, says WEF Founder and Executive Chairman Klaus Schwab. Those who have brought us to the threshold of extinction and annihilation claim that they know how to fix our world. As expected, their ‘inclusive capitalism’ offers no clear programme, nothing beyond empty rhetoric.

Meanwhile, in mid-2021, twenty-six research institutes from around the world began to meet and discuss the production of a draft programme to address the current crisis. Under the leadership of the Bolivarian Alliance for the Peoples of Our America – Peoples’ Trade Treaty (ALBA-TCP), our meetings produced a document called A Plan to Save the Planet. That plan is published in this dossier. It is intended for discussion and debate.

Read the text (PDF).

A Green New Deal for all: The centrality of a worker and community-led just transition in the US

By J. Mijin Cha, Dimitris Stevis, Todd E. Vachon, Vivian Price, and Maria Brescia-Weiler - Labor Network for Sustainability, January 2022

This paper argues that labour and community-led advocacy efforts towards a just transition are fundamental to delivering the promises of a Green New Deal (GND) and a just post-carbon world. To this end, an ambitious, far-reaching project was launched by the Labor Network for Sustainability, a non-governmental organization dedicated to bridging the labor and climate movements, in Spring 2020 called the “Just Transition Listening Project’’ (JTLP).

Over the course of several months, the JTLP interviewed over 100 individuals, including rank-and-file union members, union officials, environmental and climate justice advocates, and Indigenous and community advocates to understand what makes transition “just,” what opportunities exist for a broad coalition to advance a GND-style proposal, and to document the struggles facing working people and communities across the U.S. In doing so, we utilize the tools of political geography to examine the politics of spatiality, networks, and scale as well as the geographical and spatial dimensions of policy and political-economic institutions. We are particularly mindful of two spatial dynamics.

First, that transition policies, particularly in a hegemonic country like the USA, have global implications. The industrial transition that took place from the 1970s to the 1990s, for example, bred nativism because it cast other countries as the cause of the problem.

Second, critical geographers have pointed out that environmental justice (EJ) has been neoliberalized in the U.S. as a result of its operationalization, spatialization, and administration, starting with the Clinton Administration. Because JT is rising on the national and global agendas, we pay close attention to whether these dynamics that affected EJ are also operating with respect to JT, as well as how they can be contained.

This research is particularly timely given the ongoing federal governmental efforts to contain the spread of COVID-19 and provide basic economic and social supports. The process of the JTLP parallels the goals of the GND–intersectional efforts rooted in community knowledge for the development of a people-led GND. This paper details the process of the JTLP and the prospects for intersectional, broad-based movements that are the only way a GND can be realized.

Read the text (Link).

Building a Just Transition for a Resilient Future: A Climate Jobs Program for Rhode Island

By Lara Skinner, J. Mijin Cha, Avalon Hoek Spaans, Hunter Moskowitz, and Anita Raman - The Worker Institute and The ILR School, January 2022

A new report released today by climate and labor experts at Cornell University in collaboration with the Climate Jobs Rhode Island Coalition outlines a comprehensive climate jobs action plan to put Rhode Island on the path to building an equitable and resilient clean-energy economy.

The report lays out a series of wide-ranging policy recommendations to transition the Ocean State’s building, school, energy, transportation, and adaptation sectors to renewable energy with the strongest labor and equity standards. Core provisions of the plan include decarbonizing the state’s K-12 public school buildings, installing 900 MW of solar energy statewide, 1,300 MW of offshore wind energy, and modernizing the state’s electrical grid by 2030. 

“Rhode Island is in a unique position as a state, in 2019 it had the lowest energy consumption per capita across all the United States. Rhode Island can use climate change as an opportunity to eliminate carbon emissions, increase equity, and create high-quality jobs that support working families and frontline communities,” says Avalon Hoek Spaans, Research and Policy Development Extension Associate for the Labor Leading on Climate Initiative at the Worker Institute, Cornell ILR School and one of the authors of the report.

The Worker Institute’s Labor Leading on Climate Initiative in partnership with the Climate Jobs National Resource Center, and Climate Jobs Rhode Island, began a comprehensive research, educational, and policy process in early 2021 to develop an implementation framework to drastically reduce emissions in the state while creating high-quality union family sustaining jobs.

Over the past year, the Labor Leading on Climate team has conducted outreach to numerous leaders of the labor and environmental movements as well as policymakers and experts in the climate, energy, and labor fields to better understand the challenges and opportunities that climate change and climate mitigation and adaptation presents to Rhode Island workers and unions.

“With Rhode Island on the frontlines of the climate crisis, it will take bold, ambitious action to combat climate change and reduce greenhouse gas emissions and pollution to the levels that science demands. Fortunately, tackling climate change is also an opportunity to address the other crises Rhode Island is facing: inequality and pandemic recovery,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

“As a small state with one of the lowest emissions in the country, Rhode Island can be innovative and efficient, employing cutting-edge approaches to reverse climate change and inequality. Rhode Island has the potential to be the first state in the country to fully decarbonize and build out a net zero economy with high-quality union jobs. This would make Rhode Island's economy stronger, fairer, and more inclusive,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

Read the text (PDF).

The Quiet Culprit: Pension Funds Bankrolling the Climate Crisis

By staff - Climate Safe Pensions, December 2021

A first-of-its-kind report ... from Climate Safe Pensions Network and Stand.earth reveals that just 14 pension and permanent funds finance fossil fuels to the tune of $81.6 billion.The report shows a comprehensive accounting of the fossil fuel exposure of 14 pension funds in one report from Climate Safe Pensions Network and Stand.earth reveals that just 14 U.S. public pension funds are the quiet culprits of climate chaos: with $81.6 billion invested in coal, oil, and gas.

With over $46 trillion in assets worldwide, pension funds are among the largest institutional investors in fossil fuels. These investments have dangerously underperformed the rest of the market, making public pensions’ fossil fuels investments inherently risky.

Pension funds’ financial influence make them a force to reckon with in the battle to confront, slow and mitigate climate change. Pension fund decision-makers must take climate protection seriously — not only for their financial well-being, but also for the well-being of their millions members.

With 10 years of data, there’s hard evidence that divestment is a winning financial strategy. The fastest way for pensions to address climate change is to divest fossil fuel holdings and invest in just and equitable climate solutions.

Read the text (PDF).

12 Guilty Fogeys: Big Oil’s $86 billion offshore tax bonanza

By staff - Friends of the Earth, Bailout Watch, and Oxfam, September 2021

Few letter-soup acronyms in Washington bureaucratese are so aptly pronounced as GILTI and FOGEI, two esoteric provisions in the tax code worth tens of billions of dollars to Big Oil’s multinational majors.

Under the Trump Administration’s radical 2017 tax law, companies that extract oil and gas overseas enjoy special exemptions within the Global Intangible Low-Tax (GILTI) regime covering Foreign Oil and Gas Extraction Income (FOGEI).

It is a fitting accident of nomenclature: FOGEI’s GILTI carveout helps prop up the fossil firms most culpable for the climate crisis — to the tune of $84 billion. An additional international tax loophole enjoyed by Big Oil is worth at least another $1.4 billion, for a grand total of over $86 billion in offshore tax giveaways.

Read the text (PDF).

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