“Pensions are some of the most hard-fought gains that working people have ever won,” said James Sullivan, the AUPE’s environmental committee chair, in the release. “It’s up to us to make sure that those pensions are stable. Quantifying climate risk would help achieve that.”
In an emailed statement to Benefits Canada, the AIMCo said it acknowledges that climate change is an urgent and compelling matter requiring immediate action from all players. “As Alberta’s investment manager, we recognize the business imperative of integrating climate change into our investment processes, to both enhance and protect our clients’ risk-adjusted investment returns over an extended time horizon.
“We believe that large-scale, long-term investors like AIMCo have an essential role to play in the coming energy transition. AIMCo has been measuring its carbon footprint since 2016, a process that has since advanced to include a portion of all major asset classes and is committed to engaging with our clients to determine a climate action plan and go-forward strategy that most closely aligns with their objectives.”
The statement also pointed to the AIMCo’s recent responsible investing report, in which the government-owned pension investment manager outlined plans to address a range of environmental, social and governance issues, from integrating climate risk to building a more diverse workforce to advancing its risk governance. “We strive to adopt best-in-class ESG-integration strategies across asset classes and investment processes to better identify our ongoing assessment of risk and value,” read the statement.
Additionally, the AIMCo said it’s consulting with its pension fund clients, including the Alberta Public Service Pension Plan and the Local Authorities Pension Plan to arrive at a climate action plan and go-forward strategy. Plan members of the Alberta PSPP and the LAPP are members of the AUPE.
“LAPP Corporation has an ongoing, almost daily dialogue with AIMCo on responsible investing, with climate change and environmental risk factors high on the list of investment considerations,” said Chris Brown, president and chief executive officer of the LAPP Corp., in an emailed statement to Benefits Canada. “While AIMCo works continuously to update and integrate its oversight of ESG factors, our corporation and our sponsor board are refining our policies and processes as well, to ensure we are providing direction to AIMCo that reflects the expectations of our sponsors.”
The AUPE has a seat on the LAPP’s sponsor board, which has identified climate change as a “primary risk” in the plan’s long-term funding policy, said Brown. For its part, the LAPP Corp.’s board of directors is currently working to develop the terms of an updated responsible investment policy for the LAPP’s funds, which will review best practices around climate risk measures and carbon capture metrics.
“AIMCo has announced it will consider viable options to decrease the portfolio’s emissions trajectory over time,” said Brown. “After consulting with its clients, it expects to update its plan regarding implementation of climate-related targets early next year.”
Other resolutions adopted by the union include a just transition toward net zero for workers and a proposal for a green, new deal that includes providing union jobs through an expanded public sector; modernizing public infrastructure to adapt to climate change; recognizing Indigenous rights and treaties; and building a society that is ecologically sustainable and socially fair.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
