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Canada’s largest pension funds are making headway on climate change, even as an upcoming federal election and a new U.S. administration have the potential to spark a retrenchment on environmental policies. That’s according to the 2024 Canadian Pension Climate Report Card, released on Wednesday by the Canadian advocacy group Shift: Action for Pension Wealth & Planet Health.

“It’s a good news story — the progress of the pension sector,” said Adam Scott, Shift’s executive director. “We are seeing a growing number of funds with much more serious climate policy. They’ve been getting more sophisticated, and they’ve been putting a lot of key details in place that are needed to actually meet their targets.”

The report tracks 11 Canadian pension funds. Together, they manage more than $2.4 trillion for greater than 27 million plan members.

Shift rated the Caisse de dépôt et placement du Québec, Investment Management Corporation of Ontario and University Pension Plan a B+. Ontario Teachers’ Pension Plan received a B.

Ontario Municipal Employees Retirement System (OMERS) received a C+. Healthcare of Ontario Pension Plan, OPTrust and Public Sector Pension Investment Board earned a C. Both the Canada Pension Plan Investment Board and British Columbia Investment Management Corporation earned a C-.

Shift rated Alberta Investment Management Corporation (AIMCo) an F.

The marks are based on each fund’s performance relative to the Paris Agreement, an international climate change treaty adopted at the 2015 UN Climate Change Conference to curb global emissions, and additional measures Shift describes as “broadly aligned with global best practices.”

“We have four clear leading pensions of the 11 we track,” said Scott. “And even the middle of the pack pensions have improved noticeably. OMERS in particular moved up to the top of that middle pack.”

A media release announcing the report noted that AIMCo scored poorly as a result of “blatant political interference in its governance, seemingly driven by fossil fuel interests.”

The pension fund established a $1-billion fund to invest in energy transition and decarbonization opportunities a year ago. It’s now led by former prime minister Stephen Harper.