Shift warns that climate change risk to investment fund will not be robustly addressed
The appointment of former Canadian prime minster Stephen Harper as chair of AIMCo has been met with a tough response from a nonprofit that aims to ensure pension funds engage on climate change risk.
The Alberta government announced that Harper would chair a reconstituted board that “will oversee AIMCo’s effort to restore confidence and stability in Alberta’s investment management agency.” The move follows the dismissal of the previous board along with chair and CEO Evan Siddall.
As part of the changes earlier this month, Ray Gilmour was appointed interim CEO and Alberta finance minister Nate Horner was the sole board member while a new board was appointed. The new board includes a permanent position for the Alberta deputy minister of Treasury Board and Finance, together with the reappointment as directors of previous members Navjeet (Bob) Singh Dhillon, Jason Montemurro, and James Keohane.
Alberta Premier Danielle Smith says Harper is the right person for the job.
“We’re incredibly fortunate that Mr. Harper has agreed to take on this leadership role with AIMCo. Our ambitious goal of building the Heritage Savings Trust Fund to more than $250 billion in the next 25 years requires strong governance oversight, which he will provide. His appointment, and that of the rest of the board, are a strong step forward in giving all Albertans confidence in the long-term sustainability and success of AIMCo.”
Political interference
But nonprofit organization Shift says that Harper’s appointment is “blatant, inappropriate political interference in the governance” of AIMCo and makes it almost impossible for the organization to manage investments amid a “worsening global climate crisis and an accelerating energy transition.”
Shift believes that the change of governance risks the independence of AIMCo and may lead to more capital being directed into oil and gas investments.
“It is critical for Alberta to have an independent public investment manager able to prudently manage climate-related risks and invest for the future with the hard-earned savings of Albertans,” the organization said in a statement. “To do this, AIMCo must have governance that is fully independent from the self-interested whims of industry and government, including a board that is directly accountable to the investment manager’s pension clients, sponsors, beneficiaries and stakeholders, and the freedom to adopt a credible, science-based climate transition strategy for its investments without further political interference.”
Others have expressed concern about politicians’ involvement in AIMCo.
Following the initial governance change CUPE Alberta president Rory Gill said: “Politicians need to stop putting their politics into our pensions. Workers and retirees need their hard-earned savings to be focused on returns and reliability, not risking those savings to serve political agendas of the government of the day.”
