With great financial power comes great responsibility

On Friday, March 12, the second hour of debate concluded on my private member’s bill, C-231, An Act to amend the Canada Pension Plan Investment Board Act (investments). The Canada Pension Plan fund, valued at about half a trillion dollars, has the kind of financial firepower that can literally move markets with its investments. Where this money is invested and how it is invested can have great consequences, both around the world and here at home. We live in an increasingly globalized world where multinational corporations valued at billions of dollars have an incredible amount of power at their disposal. Many of these corporations have extracted obscene amounts of wealth from countries with corrupt or despotic governments that do not have the same labour or human rights protections we take for granted here in Canada. The working class in those countries is exploited for low wages and often suffer through poor working conditions. Their populations do not enjoy the protection of the law and are often victims to state security forces. When it comes to fighting for their environmental rights, the right to live in a safe, clean, and healthy environment, they are often brutally shoved aside, in order that profits not be interrupted. The corporations that continue exploiting inequalities and which degrade and pollute our world in the name of profit must be held accountable. Corporate social responsibility must be enforced by law, and it must be enforced through the ethical investment of our pension funds. In my introductory speech for this bill, I laid out clear examples of how our CPP funds have been invested in companies with problematic track records. This included references to the Mining Watch Index, the Food and Beverage Benchmark Findings Report, the Public Eye awards of shame, and research from the magazine Corporate Knights. The information was cross-referenced by the Library of Parliament and verified. There have been numerous reports in newspapers detailing the problematic investments made by the CPPIB. The fact of the matter is that despite its policy on responsible investing, our CPP funds have been exposed to companies engaged in blocking climate policy, blocking climate resolutions, forced or child labour, severe environmental damage, and severe human rights violations, including the detainment of immigrant children on the southern U.S. border in private for-profit American detention centres. As Canadians who contribute to the fund, we are all, by extension, shareholders in these questionable corporations and entities into which the CPPIB chooses to invest our pension. There are clear examples around the world where countries are legislating corporate social responsibility. Germany has taken the step toward forcing companies to take responsibility for any labour or environmental abuses in its global supply chain. A new law allows for hefty fines if its contractors abroad are found to breach human rights or environmental rules. Sweden's national pension funds must include environmental and ethical standards in their investment policies, and annually report to the government on how they would adhere to those practices. Norway's pension is governed by regulations that provide a legal framework emphasizing international human rights and environmental standards. Canada's current lack of ambition in legislating in this area is truly shameful. Since I introduced this bill, there have been wild and untrue allegations put forward by some of our media and by Conservatives. So, let me be very clear about two things: nothing in my bill would allow for any political interference or direction of the investment decisions of the CPPIB and nothing in this bill would change its mandate, which is to maximize investment returns without undue risk of loss. Conservatives have made it very clear from their speeches that despite clear evidence of problematic investments that could violate human, labour, or environmental rights, they are fine with profit over people. This is, unfortunately, not surprising for a party that too often remains wilfully blind to bad corporate behaviour. The Liberals, it seems, while bringing their customary platitudes about noble intentions, will also vote against the bill. I remain hopeful some of them will see the light and vote with the NDP to send this bill to committee for further study. Even if C-231 does not pass, this issue is not going away. There will be increased scrutiny of our investments going forward. The NDP believes it is not only possible, but our responsibility, to ensure that our pension investments are not contributing toward human misery and suffering around the world. Alistair MacGregor is the Member of Parliament for Cowichan-Malahat-Langford, B.C.,and the sponsor of Bill C-231, which will be voted on March 24, 2021. The Hill Times

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With great financial power comes great responsibility

Corporate social responsibility must be enforced by law, and it must be enforced through the ethical investment of our pension funds.

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