Introduced as a private member’s bill. (These don’t often become law.)
Status
Defeated, as of March 24, 2021 (This bill did not become law.)
Summary
This is from the published bill.
This enactment amends the Canada Pension Plan Investment Board Act to specify that the investment policies, standards and procedures established by the board of directors shall provide that no investment may be made or held in any entity that engages in certain practices.
This is a computer-generated summary of the speeches below.
Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Bill C-231 aims to amend the Canada Pension Plan Investment Board Act to ensure investments consider environmental, social, and governance factors, and avoid entities with unethical practices or human rights violations.
NDP
CPPIB invests unethically: The Canada Pension Plan Investment Board invests Canadian pension funds in companies with extremely poor records on human rights, labour, environmental damage, and weapons manufacturing.
Mandate lacks ethical requirements: The current Canada Pension Plan Investment Board Act mandates maximizing investment returns but does not require consideration of environmental, social, or governance factors.
Bill requires ethical screening: Bill C-231 would amend the act to require the CPPIB to consider ESG factors and prohibit investments in entities violating ethical business practices or human rights.
Ethical investing is possible: The bill would not change the CPPIB's mandate to maximize returns, as demonstrated by other large pension funds that successfully incorporate ethical standards.
Conservative
Bill is poorly drafted: The bill uses vague and undefined terms such as "ethical business practices" and "environmental violations," making it impossible to determine how the rules would be applied.
Excludes major Canadian companies: The bill's broad definitions could prevent the CPPIB from investing in many of Canada's largest companies, including the vital oil and gas sector, which is seen as an insult to workers.
Risks politicizing CPPIB: Conservatives argue the bill risks politicizing the CPPIB, which was designed to be independent and focused solely on maximizing returns for pensioners, not serving political or activist agendas.
Jeopardizes pension security: Using the half-trillion-dollar fund for activist causes rather than investment returns could jeopardize the financial security of current and future Canadian retirees.
Bloc
Supports bill principle: The Bloc Québécois agrees with the spirit of the bill, which aims to prevent Canada's public pension funds from investing in companies that behave unethically either domestically or abroad.
Bill lacks teeth: While a step in the right direction, members argue the bill is too vague and lacks the necessary provisions to significantly impact current investment practices.
Divest from fossil fuels and tax havens: The party urges the CPPIB to stop investing in polluting industries and companies operating in tax havens, suggesting Quebec's Caisse de dépôt et placement as a model.
Liberal
Supports bill's intent: The Liberal party supports the noble intent of the bill to ensure CPP investments align with ethical business practices and human rights.
Concerns about governance and clarity: There are concerns that the bill's vague language and prescribed policies could undermine the CPPIB's independent governance and operational effectiveness.
Requires provincial consent: Any changes to the CPP's investment approach require complex provincial and territorial consent, which the bill does not adequately address.
CPPIB already considers ESG: The CPPIB already incorporates environmental, social, and governance factors into its investment decisions and policies.
