In his first public talk as head of Canada’s largest pension fund, John Graham said at the Canadian Club Toronto that CPP Investments will continue to engage with companies on their climate risks rather than divest from them. Graham noted that halfway through this proxy season, the pension-fund manager had voted against 44 director nominations at companies that “did not show an appropriate plan to address climate change,” but said that more disclosure is needed to make better investment decisions. (The Logic)

Talking point: CPP Investments is one of few large Canadian fund managers that hasn’t set targets to eliminate carbon from its portfolio or operations, maintaining that large oil and gas companies will play a critical role in investing in the energy transition. “The planet will struggle to transition without the expertise of the more conventional energy players,” Graham said, highlighting clean-energy investments from portfolio firms Enbridge and Wolf Midstream. The position is at odds with a growing number of institutional investors around the world choosing to divest from heavy emitters like companies in the Alberta oilsands. Graham also emphasized its singular mandate to maximize returns for retirees. With that priority in mind, he said CPP Investments also plans to stay the course in China, despite some large investors pulling certain holdings from the emerging market over human rights concerns.