Open Letter to the BC Teachers Pension Plan

Open letter key points:

The burning of fossil fuels is driving the climate crisis.

Fossil fuel investments not only pose financial risks but also directly contradict teacher's responsibility to safeguard the future for students.

The BC Teachers' Pension Plan must direct the British Columbia Investment Management Corporation to phase out its fossil fuel investments.

BC Teachers - Sign the Open Letter!

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Attn: The British Columbia Teachers’ Pension Plan Board of Trustees

The BC Teachers’ Pension Plan must stop investing our money in climate failure

As BC teachers, we work hard to prepare young people for the challenges of the future. In a world ravaged by the climate crisis, that can’t mean only teaching, mentoring and coaching. It also means doing our part to ensure that students will graduate into a world with a livable climate. Unfortunately, our pension savings are working against the clean energy future our students need. Each paycheque, teachers hand over 11% of their earnings to a fund that is investing in the oil, gas and coal companies fueling the climate crisis [1]. That fund happens to be the BC Teachers’ Pension Plan (BCTPP).

At the 2022 and 2023 British Columbia Teachers' Federation (BCTF) AGMs, members overwhelmingly voted to divest their pension from fossil fuels. We are writing to you to urge the BCTPP to honor the will of BC teachers and direct BCI (British Columbia Investment Management Corporation), the fund manager, to immediately commit to divest from all holdings in oil, gas, coal and related fossil fuel infrastructure.

Institutional investors such as pension funds are the great enablers of climate change. Nearly 30% of fossil fuel industry shares are held by pension funds [2]. But fossil fuel investments have been underperformers over the last decade; a study by Corporate Knights indicates that had BCI divested its public equity portfolio from oil in gas in 2010, the portfolio's cumulative returns may have been 37.4% higher [3].

Science shows that to have any hope of stabilizing the climate at levels that are safe for our students, we must phase out the extraction and combustion of oil, gas and coal by mid-century. That means an immediate end to the expansion of fossil fuel infrastructure. Ensuring a bright future also requires massive new investments in zero-carbon technologies and infrastructure. Climate solutions are expanding exponentially, creating a valuable opportunity to grow our pensions in the long-term. Divesting from fossil fuels will allow pensions to avoid being stuck with stranded assets and capture the upside of investing in companies and assets that are good for our pensions and our planet, including renewable energy, climate solutions and local businesses right here in BC. 

It’s unacceptable to us that our pension finances companies and infrastructure directly undermining the future of the young people we teach. As recently as July 2023, our pension manager bought another 20% stake in National Gas, a UK natural gas pipeline network whose CEO has publicly opposed the UK's transition away from fossil fuels and spread misinformation about renewable energy [4]. This risky bet on a dying industry runs counter to the BCTPP’s fiduciary duty to invest in our best interests.

It’s time for the BCTPP to align its investments with a safe climate. That means committing to a plan that includes: a screen on new oil, gas and coal investments; phasing out all fossil fuel investments by 2025; decarbonizing our portfolio by 2040; establishing ambitious targets for increased investments in profitable climate solutions; engaging companies we own to refrain from lobbying activities that undermine ambitious climate policy; and ensuring a just transition for BC workers and communities. The BCTPP should inform members regularly of progress toward these commitments to ensure the process of divestment and reinvestment is undertaken with a timeline that reflects the urgency of the climate emergency.

As leaders in our communities, students and their families depend upon teachers to promote safety and wellbeing. Investing in fossil fuels is counter to that mandate.  It's time for the BCTF, BCTPP and BCI to take serious action by honouring the resolution voted on by BC teachers and immediately starting the process of divesting BCTPP’s fossil fuel holdings.

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References used in this letter:

[1] Teachers’ Pension Plan. (n.d.) How pension contributions work. Retrieved February 13, 2024 from https://tpp.pensionsbc.ca/how-pension-contributions-work

[2] Stand.Earth. (n.d). Climate Safe Pensions. https://stand.earth/our-work/campaigns/climate-safe-pensions/#facts

[3] Corporate Knights & The Smart Prosperity Institute. Canadian Pensions Dashboard for Responsible Investing [2nd Edition]. https://www.corporateknights.com/wp-content/uploads/2023/03/Canadian-Pensions-Dashboard-for-Responsible-Investing-2nd-Edition.pdf

[4] Leake, J. (2023, October 22). ‘Britain will need gas to avoid blackouts for decades’. The Telegraph. https://www.telegraph.co.uk/business/2023/10/22/national-gas-jon-butterworth-britain-fossil-fuels-blackouts/