Quebec pension fund adds social, green mandate

Summary#

This Quebec bill changes the law that governs the Caisse de dépôt et placement du Québec (the Caisse), which manages public funds like pensions. It adds a clear duty for the Caisse to invest in ways that create lasting social and environmental benefits. It also makes the Caisse report those impacts each year.

• Updates the Caisse’s mission to include making investments with durable social and environmental impacts.
• Keeps the focus on long-term, sustainable returns for depositors (people and plans whose money the Caisse manages).
• Requires an annual report to the Finance Minister by April 15 that describes the social and environmental impacts of the Caisse’s investments.
• Requires that report to be tabled in the National Assembly.
• Lets the government set rules that define how to measure these impacts and how to disclose them.

What it means for you#

• Workers and retirees with public pensions

  • Your savings are still managed to earn long-term returns, but the Caisse must also ensure investments have lasting social and environmental benefits.
  • The bill does not change pension contribution rates or benefit rules.
  • You can expect more public information each year about the impacts of how your money is invested.

• Quebec businesses and project developers

  • Projects that show strong, durable social or environmental benefits may be more likely to attract investment from the Caisse.
  • You may need to provide clearer data on social and environmental outcomes if you seek funding.

• General public and taxpayers

  • There will be a yearly public report on the social and environmental impacts of the Caisse’s investments, increasing transparency.
  • Future government regulations may set common standards for impact measurement, making comparisons easier to understand.

• The Caisse (management and staff)

  • Must integrate social and environmental impact into investment decisions as part of its mission.
  • Must collect, measure, and disclose impact information each year, following any government-set criteria.

Expenses#

Estimated annual cost: No publicly available information.

Proponents’ View#

• Aligns the Caisse with Quebec’s goals for sustainable development while still aiming for solid long-term returns.
• Improves risk management by steering capital toward companies and projects better prepared for climate and social challenges.
• Increases transparency and public trust through clear, yearly reporting on impacts.
• Helps channel more investment into Quebec projects that deliver community benefits and cleaner growth.
• Creates a common framework for measuring impacts, making claims about “sustainable” investing more credible.

Opponents’ View#

• Could narrow investment choices and potentially lower returns if profitable options are ruled out by impact criteria.
• “Durable social and environmental impacts” is broad; unclear definitions may lead to confusion or uneven application.
• Risk of politicizing investment decisions if the government sets detailed criteria by regulation.
• Adds reporting and compliance work that could raise administrative costs.
• Might conflict at times with specific depositor investment policies or priorities.