A new report shows the patchwork of progress at Canada’s big life insurers in their efforts to address climate change, and reduce their more than $90 billion in fossil fuel investments.
The report from Investors for Paris Compliance (I4PC) argues that progress so far is slow at Sun Life Financial Inc., Manulife Financial Corp. and Great-West Lifeco, even as they do make more commitments and disclosures.
It also gives some indication as to the complexity of the undertaking as the insurers, which collectively manage some $3.7 trillion in assets, have to implement policies and targets across a range of subsidiaries with varying business models and priorities.
The report notes all three insurers have set net-zero targets for the pool of life insurance premiums they invest directly, but targets are much less consistent for their much larger asset management divisions.
It says the majority of Sun Life asset management subsidiaries have also set targets and a minority of Great West ones have, while Manulife Investment Management has not set targets.
Meanwhile, Manulife and Sun Life disclose a majority of their financed emissions, and have comprehensive net-zero disclosures, while Great West, controlled by Power Corp., is well behind on both.
Kyra Bell-Pasht, director of research and policy with I4PC, says the billions of dollars the life insurers are investing in fossil fuels are a contradiction to their business models focused on the health and well-being of clients.
“Climate impacts are already adversely affecting the health of life insurance clients, and this will accelerate without stronger action,” she said in a statement.
This report by The Canadian Press was first published Oct. 23, 2024.