IM-Baldwin_2024_0528.pub

The legislation creating the Canada Pension Plan Investment Board includes a statement of “Objects and Powers” that summarizes the approach to investing consistent with fulfilling the fiduciary duty of the fund managers. [...] The objects include: Assisting the Canada Pension Plan in meeting its obligations to contributors and beneficiaries; managing any amounts transferred and its right, title or interest in any designated securities, in the best interests of the contributors and beneficiaries under that legislation; and finally, to invest its assets with a view to achieving a maximum rate of return, without undue risk. [...] The budget and the open letter share the goal of an increase in real capital investment, not simply about the purchase of securities. [...] If the government wanted to do something of value to pension fund investors and society in general, it would move ahead on the development of the taxonomy of climate transition investments as recommended by the Sustainable Finance Action Council. [...] It is important to repudiate the view expressed in the letter that says: “Government has the right, responsibility and obligation to regulate how this [pension] savings regime operates.” This view is totally at odds with the objects and powers of the CPPIB and PSP Investments.