A report by a climate advocacy group is raising concerns about billions of dollars of public pension investments in natural gas infrastructure amid efforts to reduce global emissions.
The report by Shift Action for Pension Wealth and Planet Health finds that nine of Canada’s largest public pensions have invested in 22 gas-related companies that collectively operate nearly 350,000 kilometres of pipelines globally.
It says these holdings by the Canada Pension Plan Investment Board, Public Sector Pension Investment Board and others risk becoming stranded assets as the energy transition accelerates.
Natural gas companies have talked about a potential switch to distributing hydrogen, but the report says it’s not a realistic option and is unsuitable as a climate solution.
Shift says pensions should push the utilities they co-own to halt fossil fuel expansion and transition to sustainable energy, and if they don’t respond, the pensions should be prepared to sell.
Some major pensions like the Canada Pension Plan Investment Board have said they’re working with oil and gas companies to reduce emissions while maintaining needed access to energy.
