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AIMCo CEO not sold on fossil fuel divestment as an investment strategy

Alberta Investment Management Corp. CEO Evan Siddall in Calgary, Alta., Wednesday, Sept. 21, 2022. THE CANADIAN PRESS/Jeff McIntosh

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CALGARY — The CEO of the Alberta Investment Management Corp. (AIMCo) says divesting from fossil fuels is the opposite approach pension funds should be taking if they want to help solve the climate crisis.

Evan Siddall says AIMCo wants to be a leader in financing the transition to a low-carbon economy, but it won't do that by divesting from fossil fuels as some global pension funds have done.

Instead, Siddall says AIMCo will be exploring opportunities to invest in oil and gas companies and other heavy industrial emitters.

He says heavy-emitting companies are developing plans to lower, though not eliminate, their greenhouse gas footprints and will need capital to implement those plans.

Siddall says investing in the oil and gas sector's decarbonization efforts will help Canada achieve its climate targets and generate strong returns for investors.

Evan Siddall says AIMCo wants to be a leader in financing the transition to a low-carbon economy, but it won't do that by divesting from fossil fuels as some global pension funds have done.

AIMCo is one of Canada's largest institutional investment managers, responsible for the investments of pension, endowment and government funds in Alberta. As of Dec. 31, 2021, it had $168.3 billion of assets under management.

This report by The Canadian Press was first published Sept. 21, 2022.

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