Life insurers invest billions in fossil fuels while claiming climate action
- A recent report highlights that major Canadian life insurers manage $3.7 trillion in assets and invest over $90 billion in fossil fuels.
- While Sun Life, Manulife, and Great-West have set net-zero targets for some investments, their approaches to asset management vary widely.
- The report concludes that substantial improvements are needed to align investment practices with their climate commitments to protect clients' health.
A report by Investors for Paris Compliance shows mixed progress among Canada's major life insurers in addressing climate change. These firms collectively manage approximately $3.7 trillion in assets and have significant investments exceeding $90 billion in fossil fuels. While all three companies, including Sun Life Financial Inc., Manulife Financial Corp., and Great-West Lifeco, have set net-zero targets for their life insurance premium investments, consistency in these commitments across their asset management divisions varies significantly. Sun Life and Manulife disclose a majority of their financed emissions, while Great-West is lagging behind in transparency. Kyra Bell-Pasht, I4PC’s director of research and policy, emphasizes the contradiction between the insurers’ investment choices and their business focus on client health, noting that climate impacts are already harming their clients’ well-being.