House Bill C315 to Amend CPPIB Act to Ban Investments in Entities Engaged in ESG Violations and War Arms
Posted on 02/15/2023
In the House of Commons of Canada, Bill C-315 had its first reading. The bill seeks to amend the Canada Pension Plan Investment Board Act to specify that the investment policies, standards and procedures established by the board of directors shall provide that no investment may be made or held in any entity that engages in certain practices.
Canada Pension Plan Investment Board Act
1 Section 35 of the Canada Pension Plan Investment Board Act is renumbered as subsection 35(1) and is amended by adding the following:
Considerations
(2) The investment policies, standards and procedures, in order to take into account environmental, social and governance factors, shall provide that no investment may be made or held in an entity if there are reasons to believe that the entity has, in performing acts or carrying out work,
(a) committed human, labour or environmental rights violations;
(b) produced arms, ammunition, implements or munitions of war prohibited under international law; or
(c) ordered, controlled or otherwise directed acts of corruption under any of sections 119 to 121 of the Criminal Code or sections 3 or 4 of the Corruption of Foreign Public Officials Act.
The amendment would impact companies such as defense firms and oil and gas companies, or firms that have been impacted by bribery scandals.
LINK: https://www.parl.ca/DocumentViewer/en/44-1/bill/C-315/first-reading