The Alberta Federation of Labour is warning that the province’s pensions managed by the Alberta Investment Management Corporation (AIMCo) are over-exposed to carbon-emitting industries, despite increased awareness of the risks linked to them. AIMCo’s portfolio produces 243 tonnes of carbon dioxide for every million dollars it invests, up from 179 tonnes in 2015. AIMCo said its exposure to fossil fuels is in line with global trends; Joel Gehman, associate director of the Canadian Centre for Corporate Social Responsibility at the University of Alberta, echoed the claim. (The Canadian Press)
Talking point: AIMCo’s increased exposure to fossil fuel-reliant companies isn’t just an environmental concern—it could be a problem for people relying on those investments to fund their retirements. Trident Exploration serves as an example: the junior energy company went bankrupt last spring, even after a $12.3-million AIMCo investment. As the financial risks linked to climate change are increasingly understood, some regulators are considering legislation to limit exposure. On Thursday, the accounting watchdog for the U.K. and Ireland said he plans to review how firms and auditors assess and disclose the potential impacts of climate change on their businesses. The EU is also considering standards for how companies report environmental and social risks.