Canada

By Elizabeth Perry - Work and Climate Change Report, November 11, 2021

 “Canadian pensions are retiring fossil fuel investments” (Corporate Knights magazine, November 9) strikes a hopeful note about the state of Canada’s pension funds, stating: “Canadian pension portfolio exposures to fossil fuel stocks are down to a 10th of what they were 10 years ago, notwithstanding some controversial private equity investments.” The article summarizes analysis from the Canadian Pensions Dashboard for Responsible Investing, a new project of The Natural Step Canada, Smart Prosperity Institute, and Corporate Knights. That full report is a unique overview of sustainability performance, and employs measures such carbon footprint of the portfolio, presence of net-zero targets, the pay link to Environmental Standards (ESG), support for shareholder environmental resolutions, and more.

Another related Corporate Knights article describes youth-driven campaigns which have challenged pension plans to acknowledge and adjust to climate risk. “How young people are using climate litigation to fight for their future” focuses on youth activism targeting pension funds. It describes a years-long challenge to the Retail Employees Superannuation Trust (REST) in Australia, which ultimately ended in the pension fund settling a lawsuit out of court by acknowledging that “climate change is a material, direct and current financial risk” that could “lead to catastrophic economic and social consequences.” The fund also agreed to be more proactive and “ensure that investment managers take active steps to consider, measure and manage financial risks posed by climate change and other relevant ESG risks.” A second example describes the current activist campaign calling for the Ontario Teachers’ Pension Plan (OTPP) to phase out all current fossil fuel investments by 2025 and completely decarbonize its portfolio by 2030. Retired teachers and high school students have mobilized in Toronto, under the leadership of Shift Action for Pension Wealth and Planet Health (Shift), which is organizing similar campaigns at the ten largest Canadian pension funds. In September 2021, the Ontario Teachers Pension Plan Board announced  “industry-leading targets to reduce portfolio carbon emissions intensity by 45% by 2025 and two-thirds (67%) by 2030, compared to its 2019 baseline. These emission reduction targets cover all the Fund’s real assets, private natural resources, equity and corporate credit holdings across public and private markets, including external managers.” The WCR has more detail here .

Relevant to all pension management: new research published in Nature Energy and summarized in The Guardian with this headline: “Half world’s fossil fuel assets could become worthless by 2036 in net zero transition” .

By Padraig Moran - CBC Radio, November 9, 2021

Kirk Olsen says transitioning away from fossil fuels "is probably a good thing," but as an oil and gas worker, the uncertainty around how that will happen makes him nervous.

"If there was a sure thing around the corner and you knew, I'm just going to slide into this other job, everything's going to be great ... it would make a guy feel a lot better," said Olsen, a heavy equipment mechanic working on the Coastal GasLink pipeline project in Kitimat, B.C.

Olsen has worked on and off in the sector for 12 years. Four years ago, he started his own company supplying and maintaining machinery. He works 20 days on-site, then has 10 days off to travel home to Campbell River, B.C., almost 1,000 kilometres away — a sacrifice he says he's willing to make to provide for his young family.

For him, a "just transition" means the federal government provides training in a new field and makes a commitment that wages won't drop.

Until he has that clarity, Olsen feels "like you worked so hard for something and then it kind of gets taken away," as he told CBC Radio's What on Earth. "I guess that's life, but it's no less frustrating."

By staff - CBC Radio, November 9, 2021

Kirk Olsen says transitioning away from fossil fuels "is probably a good thing," but as an oil and gas worker, the uncertainty around how that will happen makes him nervous.

"If there was a sure thing around the corner and you knew, I'm just going to slide into this other job, everything's going to be great ... it would make a guy feel a lot better," said Olsen, a heavy equipment mechanic working on the Coastal GasLink pipeline project in Kitimat, B.C.

Olsen has worked on and off in the sector for 12 years. Four years ago, he started his own company supplying and maintaining machinery. He works 20 days on-site, then has 10 days off to travel home to Campbell River, B.C., almost 1,000 kilometres away — a sacrifice he says he's willing to make to provide for his young family.

For him, a "just transition" means the federal government provides training in a new field and makes a commitment that wages won't drop.

Until he has that clarity, Olsen feels "like you worked so hard for something and then it kind of gets taken away," as he told CBC Radio's What on Earth. "I guess that's life, but it's no less frustrating."

By Elizabeth Perry - Work and Climate Change Report, November 1, 2021

 A new report from the Canadian Institute for Climate Choices analyzes the trends in the global transition to a low carbon economy, and warns that 800,000 Canadian jobs could be at risk if we fail to support strategic industries. The report states that Canada is particularly vulnerable to market disruptions because over 70 per cent of our goods exports and over 60 per cent of foreign direct investment in Canada are in vulnerable sectors – not only fossil fuels, but also such as auto parts and vehicles, minerals, and energy intensive industries such as steel and aluminum.

The report, Sink or Swim: : Transforming Canada’s economy for a global low-carbon future is a business analysis with the overall message that transition offers opportunity, and Canada needs to act more quickly to “catch the wave”. Besides examining the benefits and sectors of opportunity in the low carbon transition, the the report includes a recommendation to: “Develop local and people-focused transition plans that drive new areas of job creation, improve the resilience of the workforce and empower Indigenous economic leadership.” More specifically, the report concludes with : “ Federal, provincial, territorial, municipal, and Indigenous governments should work together to develop detailed transition plans to support workers and communities and improve overall well-being. Transition plans should aim to attract new sources of growth and jobs, support worker transition and skill development, improve youth education outcomes and readiness, ensure alignment with Sustainable Development Goals, and empower Indigenous economic leadership.”

The Sink or Swim discussion starts from a fundamental statement that “achieving success is also about more than supporting affected workers in transition-vulnerable companies or sectors. Success will come from generating strong and inclusive economic growth that improves the wellbeing of all Canadians.” The ensuing discussion recognizes that multinational companies have weak connections and relationships to local communities, making them more likely to relocate than to re-invest. Using census data, it identifies 55 communities of 10,000 people or more that have more than 3% of their workforce employed in transition-vulnerable sectors, highlighting the Wood Buffalo area in the oil sands of Alberta, and Thompson Manitoba, a nickel-mining community. The report offers recommendations for communities, focusing on the critical areas of infrastructure investment, financing, and the need for local capacity to analyze labour markets and financial opportunities– using the examples of the InvestEU advisory hub and the Colorado Office of Just Transition.

Regarding workers, the report documents the increased vulnerability of youth, minorities, and especially Indigenous workers. It sees the solution for all as improved education and training opportunities – describing programs in B.C. , the North, and for Indigenous workers. The report also states: “all post-secondary education programs—including trades, engineering, science, economics, and business—can support transition success by incorporating future skills and knowledge needs into their curricula and programming.” 

By Elizabeth Perry - Work and Climate Change Report, November 1, 2021

Nova Scotia’s Minister of Environment introduced the Environmental Goals and Climate Change Reduction Act to the Legislature on October 27 – the press release is here. It builds on a previous Bill which was never enacted, with the important distinction that the EGCCRAct enshrines climate action goals and timelines into law. The new legislation follows a public consultation in 2021, and is built on four principles: equity, sustainable development, a circular economy, and “Netukulimk” (a Mi’kmaq word defined as “the use of the natural bounty provided by the Creator for the self-support and well-being of the individual and the community by achieving adequate standards of community nutrition and economic well-being without jeopardizing the integrity, diversity or productivity of the environment”).

The specific goals include: reducing total GHG emissions to at least 53% below 2005 levels by 2030; ensuring at least 30% of new passenger vehicles are zero-emissions by 2030;a requirement that any new build or major retrofit in government buildings, including schools and hospitals, that enters the planning stage after 2022, be net-zero energy performance and climate resilient; decrease greenhouse gas emissions across Government-owned buildings by 75% by the year 2035; phase out of coal-fired electricity generation by 2030, with 80% of electricity supplied by renewable energy by 2030. The problematic issue of forestry policy is finally addressed with a deadline of 2023 to implement the ecological forestry approach for Crown lands, as recommended in the 2018 Lahey report, “An Independent Review of Forest Practices in Nova Scotia”.

Regarding equity, the government will “ initiate in 2022 ongoing work with racialized and marginalized communities to create a sustained funding opportunity for climate change action and support for community-based solutions and policy engagement.” The legislation mandates a Sustainable Communities Challenge Fund to be established.

The Act mandates a a Strategic Plan titled “Climate Change Plan for Clean Growth” to be tabled by December 31, 2022, with annual progress reports and a complete review in 5 years.

Reaction to the legislation, with a goal-by-goal analysis is available from Nova Scotia’s Ecology Action Centre, is here . One of the sector- specific pieces is a call for an end to oil and gas production and a Just Transition for workers . Despite the fact that there is currently no oil and gas production in Nova Scotia, the EAC highlights the danger that the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) issued a call for bids in May 2021.

By Elizabeth Perry - Work and Climate Change Report, October 26, 2021

In the run-up to COP26, and on the same day that Canada’s Big Six Banks joined the United Nations Net-Zero Banking Alliance (NZBA), Canadian institutional investors and some of its pension fund managers also hit the news, by releasing a new Canadian Investor Statement on Climate Change. Coordinated by the Responsible Investment Association (RIA), the statement signed on October 25 states: “We recognize that a transition to a net-zero economy will involve a major transformation of sectors and industries. We encourage all companies and stakeholders to facilitate a just transition that does not leave workers or communities behind. We also recognize that the financing required for transition activities and climate solutions presents an investment opportunity….. We further recognize that Indigenous Peoples have managed collective wealth for millennia – including lands, waters, and …..We support a transition to a net-zero economy informed by Indigenous perspectives, that supports Indigenous economic opportunities, and encourages business practices that align with the principles of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).”

The Statement sets out specific expectations for investees which include just transition, and pledges five actions for the investment community, such as integrating climate-related risks and opportunities into the investment processes and developing a climate action plan to achieve net-zero by 2050. Further, the 36 signatories pledge to “ Ensure that any climate-related policy advocacy we undertake supports a just transition and the ambition of achieving global net-zero emissions by 2050 or sooner, and engage with our industry associations to encourage climate advocacy efforts that are consistent with these goals.”

Pension funds which have signed on to the Statement (so far) include: British Columbia Investment Management Corporation, British Columbia Municipal Pension Board of Trustees, British Columbia Public Service Pension Board of Trustees, Canada Post Corporation Pension Plan, Caisse de dépôt et placement du Québec, Ontario Pension Board, Pension Plan of The United Church of Canada, University of Toronto Asset Management (UTAM), and the University Pension Plan.

 “Only Labor Can Force Canadian Pension Funds to Divest From Oil “ (Jacobin, October 19) puts this lofty new institutional Statement in perspective, as it takes a more critical look at one of the leading pension fund managers, the Caisse de dépôt et placement du Québec, and its September announcement that it would quit all oil production investments at the end of 2022. After also highlighting examples of the fossil and mineral exploration investments of some of Canada’s major pension funds, the article concludes: “ ‘Financial sustainability’ — despite the Caisse’s announcement — will continue to take precedence over climate justice.” 

Thus, the main point of the Jacobin article is to urge unions to take action:

 “….the unions who represent the beneficiaries of these pension funds can fight to make sure that the deferred wages of workers are used for the common good. In many cases, unions appoint trustees to boards of investment funds. If the labor movement chose to organize around these issues, it would be a game changer. …. Public sector funds are subject to legislation and can be reformed through political action. Although they’ve been carefully designed to be free of democratic accountability, they are not immune to external pressure. Sustained organizing by unions and their members can lead to greater amounts of worker control over the use to which these large sums of money are put.”

By Olamide Olaniyan and Naomi Klein - The Tyee, October 22, 2021

The way we currently talk about the climate emergency and how to get out of it has been very much determined by Naomi Klein.

The author of This Changes Everything and other bestsellers, Klein is a major critic of global capitalism, has helped articulate its effects on the environment and climate change and supports transforming society in ways that improve the lives of people and protect them from its worst and unequal effects.

The Canadian journalist, author and activist was involved in drafting the 2015 Leap Manifesto — a plan for transitioning to a clean energy economy — which was the centre of much debate within the federal New Democratic Party and amongst its supporters, including in these pages.

In recent years she’s been involved with climate justice movements in the U.S. and Canada pushing for a Green New Deal and was even a surrogate for U.S. Sen. Bernie Sanders’ 2020 election campaign for the U.S. presidency.

Now Penguin has decided to package excerpts from her previous writing for a volume in its Green Ideas series.

Surely that counts as success, right? Well, as she pointed out to The Tyee in an interview last week, after a near decade of advocating for a range of climate goals, “We haven’t gotten any of those things.”

A 2016 NDP resolution based on the Leap Manifesto passed, but party leadership has since distanced itself from it. Klein’s spouse, filmmaker and climate activist Avi Lewis, ran in the 2021 federal election but ultimately lost his bid to become the NDP MP for West Vancouver-Sunshine Coast-Sea to Sky Country.

Below the 49th parallel, Bernie Sanders didn’t win the Democratic nomination to run as president. None of the various Green New Deal bills in the U.S. have passed.

And when we talked to Klein last week, citizens of the country where she’d spent the last couple of years living and organizing had been agonizing over whether significant legislation to address climate change would make it through the Senate, thanks to two centrist democrats.

And on a grander scale, not much has changed. Many countries, including Canada and the U.S. — two of the largest per capita emitters — continue to drag their feet and have yet to hit their commitments to cut emissions.

All this Klein would readily admit. But she’s far from ready to declare defeat. As in chess, even among the losses, there is the fight for a fighting chance. And in the long run, every move matters.

The author, who’s studied and long been involved in climate justice movements, says she won’t “indulge” in climate doom-ism. She still believes this moment has quite a bit of potential.

“We have locked in a very, very rocky future, but it is not too late for us to avert truly, unlivably catastrophic warming,” she said.

In September, Klein joined UBC’s geography department as a professor for climate justice, along with her spouse Lewis.

She’s also involved in building the university’s new Centre for Climate Justice. The goal, she says, “is to be useful on the timeline of the climate emergency, and very much to take leadership from the most impacted constituencies.”

Klein talked to us about her new role, the recent Canadian election, and the “infrastructure of care.” This interview has been edited for length and clarity.

By Tom Fraser - Jacobin, October 19, 2021

One of Canada’s largest institutional investors, responsible for managing billions of dollars in workers’ pensions, has committed to fossil fuel divestment. It’s a good step — but without pressure from the labor movement, these promises will mean nothing.

On September 28, the institutional investor and pension manager Caisse de Dépôt et Placement du Québec (CDPQ) announced that it would no longer invest in oil production. The Caisse made this decision as part of their strategy to reach net-zero by 2050. Canada’s second-largest pension fund manages the retirement contributions of over six million Quebecois. Their stability and security in old age is bound up with the Caisse’s ability to assure returns on its vast asset portfolio.

Although it comes with caveats, the Caisse’s announcement could potentially be the start of a wider movement on the part of investment companies to divest Canada’s public sector pension funds from fossil fuels. With such massive portfolios, pensions could be at the forefront of a just transition.

By Elizabeth Perry - Work and Climate Change Report, October 19, 2021

Citizens of Calgary voted in municipal elections on October 18 and returned the city’s first female mayor, Jyoti Gondek . As summarized by CBC, she promised to address “inclusive economic recovery, …. social disparities within communities and take action to address climate change.” In the lead-up to Calgary’s elections, Alberta Ecotrust Foundation, Calgary Climate Hub and Clean Energy Canada commissioned a poll, conducted in August 2021, with results announced on September 8th. The results show that 69% of Calgarians are concerned about climate change impacts. Some specific highlights:

73% agreed with the statement: “ It is important to recognize the future of fossil fuels and invest in transitioning oil and gas workers to other industries.”

 70% agreed that “The transition to renewable energy will ultimately improve the health and well-being of my family and me.”

67% agreed that “Calgary should focus its economic diversification efforts in becoming a leader in addressing climate change”.

And when asked to choose between a path to more oil and gas investment or a clean energy path, 49% agreed with the statement: “The signal from investors and financial markets is clear as they divest of oil & gas assets, and Calgary should invest in the transition toward clean energy.” (compared to 38% who favoured the old oil and gas economy). 

Environmental concerns were high, including: 79% who expressed concern about poor air quality from wildfire smoke, 75% concerned with protecting ecological sensitive areas, and 73% concerned with the increasing number of extreme weather events.

By Elizabeth Perry - Work and Climate Change Report, October 19, 2021

At a press conference on October 13, representatives of Climate Action Network Canada , Blue Green Canada, United Steelworkers, and Unifor launched a new report,  Facing Fossil Fuels’ Future: Challenges and Opportunities for Workers in Canada’s Energy and Labour Transitions. The report considers the challenges to the fossil fuel industry, including automation, and projects that 56,000 alternative jobs will need to be created for current Canadian oil and gas workers in the next decade. The report offers seven recommendations for a Just Transition, building on policy proposals from Canada’s Just Transition Task Force for Coal Workers and Communities, the Fédération des travailleurs et travailleuses du Québec, and Unifor (whose most recent statement is their submission to the Just Transition consultation process here. ) Key recommendations include: “Recognizing the expertise of workers, through consultation with workers and communities, Canada must create Just Transition policy / legislation that holds the government accountable to developing transition strategies. Similar policy / legislation should be adopted by all provinces with an emphasis on the oil and gas producing provinces of British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador.” Funding is seen to come from Covid recovery funds and the Infrastructure Bank, with another recommendation: “Tie public investments to employers meeting conditions on job quality, including pay, access to training, job security, union access and representation through mandatory joint committees.”

Summaries of Facing Fossil Fuels’ Future appear in the press release from Climate Action Network, and in “With Canadian fossil fuel jobs about to be cut in half, it’s time to talk about a just transition” (National Observer, Oct. 15). The latter article highlights the enhanced impact of the bringing labour unions and climate activists together, and also emphasizes that workers must be included in all transition plans, using the cautionary tale of Algoma Steel. As explained in “Why Mike Da Prat boycotted the prime minister’s Algoma Steel announcement” (Soo Today, July 6 2021) the union was not adequately consulted on transition planning when the government awarded $420 million in July 2021 to help Algoma Steel transition from coal to greener, electric-arc furnace production.