CPP and AIMCo top list for board members linked to oil and gas firms, says Shift report
Nine directors overseeing some of Canada’s largest public sector pension funds also hold positions in fossil fuel companies, a crossover that risks “undermining prudent pension governance,” according to a June 26 report from Shift: Action for Pension Wealth & Planet Health.
Pensions and Investments reported that Shift identified directors across five major Canadian pension funds—CPPIB, OTPP, PSP, AIMCo, and OMERS—who hold formal ties to 12 fossil fuel companies or fossil-focused investment firms.
CPPIB and AIMCo had the highest concentration of these so-called “fossil fuel-entangled” directors at 30 percent and 33 percent, respectively, as per Shift.
The report, titled Entrenched Interests: Fossil Fuel Ties On Canada’s Pension Boards, argued that these overlapping roles may result in “substantial potential for real or perceived conflicts,” especially as pension funds confront the climate-related financial risks threatening retirement savings.
At CPPIB, the board includes Barry Perry (Capital Power), Judith Athaide (Kiwetinohk Energy), and Ashleigh Everett (Royal Canadian Securities).
PSP board member Miranda Hubbs also serves on the board of Imperial Oil, which is majority-owned by ExxonMobil.
AIMCo, whose entire board was replaced in November 2024 by the Alberta government, now includes Stephen Harper as chair.
Harper is a senior adviser and equity partner at Azimuth Capital Management, a firm with $5.8bn in energy investments, according to Shift.
Bob Dhillon, another AIMCo board member, also serves as a director at Strathcona Resources, which Shift describes as a “rapidly expanding oil and gas company.”
At OMERS, Diane Kazarian sits on the board of Gibson Energy.
According to Shift, Gibson was among several firms that called for dismantling key Canadian climate policies in 2025.
OTPP directors M. George Lewis and Deborah Stein hold positions at companies such as South Bow Corp., James Richardson & Sons, Nuvista Energy, Trican Well Service, and Washington Gas.
Shift stated that Nuvista is lobbying for fracked gas export expansion, while Washington Gas is investing heavily in infrastructure despite facing lawsuits over greenwashing and lobbying against clean energy policies.
The report includes reactions from concerned plan members.
“It’s no wonder that OTPP refuses to stop investing in oil, gas and pipelines when these are the people on my pension’s board,” said OTPP member Kathy Mason.
CPP contributor and Queen’s University professor Marcus Taylor said he couldn’t help but wonder whether fossil fuel interests influenced CPP’s decision to abandon its net-zero by 2050 target.
CPP announced on May 22 that it would abandon its commitment to reach net-zero financed emissions by 2050, citing legal challenges and difficulties meeting interim milestones.
According to Shift, the number of boards with fossil-linked directors has declined from seven in 2022 to five in 2025. HOOPP, IMCO, and CDPQ are now considered “fossil-free.”
Despite this reduction, Shift argued that unresolved conflicts could have broad implications for fund governance and climate exposure.
Shift recommended reforms to address the risks, including climate literacy requirements for new appointees, development of board competency frameworks that incorporate climate expertise, and disqualification or recusal protocols for directors with fossil fuel affiliations.
Shift stated that it is not calling for a full overhaul of board appointment procedures.
Instead, it called for stronger safeguards such as requiring board members to disclose conflicts and ensuring all external advisors—including consultants and investment managers—have demonstrated climate expertise.
As reported by The Globe and Mail, CPP Investments rejected the allegations.
Michel Leduc, global head of public affairs and communications, said, “The report is nonsense.”
He added that the energy sector’s total GDP contribution to Canadian economic activity is disproportionately significant and that top governance experience in Canada is found there.
AIMCo spokesperson Carolyn Quick told The Globe and Mail that the board follows a “rigorous appointment process” and that members are bound by a Code of Conduct.
HOOPP, CPP and OTPP declined to comment. PSP, AIMCo, CDPQ and OMERS could not be reached.
The report also examined board nomination structures.
As per Shift, CPPIB directors are appointed by the federal cabinet upon recommendation by the finance minister after consultation with provincial ministers and a nominating committee.
PSP appointments follow a similar process through the Treasury Board.
OTPP directors are split between provincial government appointees and representatives from the Ontario Teachers’ Federation.
AIMCo’s entire board is provincially appointed.
Rick Funston, CEO of Funston Advisory Services, told Shift that “public retirement system trustees are part-time volunteers,” and governance statutes—not nominating committees—dictate board composition.
He noted two types of conflicts: personal and group-based. The latter arises when trustees represent different stakeholder interests but lack explicit conflict resolution processes.
Sebastien Betermier, associate professor of finance at McGill University and executive director of the International Centre for Pension Management, added that most boards rely on independent nomination committees that review applications based on skills and experience.
He said directors are obligated to disclose potential conflicts and follow existing guidelines.
Adam Scott, executive director of Shift, concluded in the report, “Climate-related board decisions from funds managing hundreds of billions in assets have major implications for fossil fuel companies.”
He noted that fossil fuel company directors could face real or perceived conflicts, which, if left unaddressed, might undermine prudent pension governance.
