Canada’s plans to fast-track oil and gas pipeline projects could sidestep Indigenous rights, exposing pension liabilities
None of Canada’s 11 largest pension funds have publicly disclosed investment policies that align with Indigenous rights, and fast-tracked government projects for oil and gas pipelines could threaten their consenting rights, exposing liabilities for investors. These are the conclusions of a report from climate advocacy group Shift Action.
The non-profit acknowledges that some pension funds have published or announced reconciliation action plans aimed at improving how they address Indigenous rights in their organisations. However, it says those plans are incomprehensible and unclear about how they influence investments.
In 2021, Canada brought the UN Declaration on the Rights of Indigenous Peoples into a legislative framework, including its core principle of “free, prior and informed consent”. Further, the country’s Truth and Reconciliation Commission has called for pension funds to adopt UNDRIP-based investment principles, says the report.
Last year the Canadian government began designating major energy projects, including oil and gas pipelines planned on Indigenous lands, as “nation-building” infrastructure and placed them on a fast-track approval process. The shortened approval time could risk Indigenous communities’ right to FPIC rights, says Shift Action.
The non-profit recommends that pension funds scrutinise the government’s push to fast-track major energy projects and refuse to invest in those that do not protect FPIC rights.
It warns that failure to uphold Indigenous rights can generate regulatory problems, litigation, protests and project delays, making the issue a material risk.
The full report can be read here.