Despite high-profile scandals involving for-profit prisons, unsafe long-term care facilities, renovictions at Starlight Investments in Toronto, tax avoidance, and an overly close relationship with the oil and gas industry, PSP Investments—tasked with managing the pension fund of most of our members—maintains a nonchalant attitude toward responsible investing. At recent public and union-stakeholder meetings, PSP officials dodged pointed questions and criticism regarding their shocking record on Environmental, Social, and Governance (ESG) issues.
Unlike most other pension plans this size, PSP lags in integrating ESG principles into its investment strategies. While they have acknowledged the relevance of climate risks on investment profits, they remain largely focused on reporting, not taking action—a stance that most large plans evolved from over a decade ago. This failure to integrate responsible investing not only endangers future returns but also deepens the climate and affordability crisis. PSP is also conspicuously silent on other critical aspects of ESG including equity initiatives, tax fairness, indigenous rights, union-busting, and evidence-based public policy.
This is not rocket science. Other major pension fund investors, such as Quebec’s Deposit and Investment Fund (CDQP) and Ontario’s University Pension Plan, have proven that meaningful ESG investing is both feasible and financially viable. PIPSC is calling on PSP Investments to take immediate steps to align its investment strategy with the values of the public service workers for which it is supposed to work. This means creating a genuine path to carbon reduction, adopting investment exclusions based on common-sense ethical standards, and signing onto global investment commitments respecting human, social, and worker rights.
PSP Investments operates as an arm’s length Crown corporation, tasked with managing member and employer contributions to the Public Service Pension Plan, the defined benefit pension plan covering most PIPSC members in the Core Public Administration and at separate employers.