As public health impacts from fossil fuel combustion and climate change intensify, there is a critical opportunity for Canadian lifecos to advance their net-zero commitments and align their money with their core mission: protecting policyholder health.
BloombergNEF recommends that investment portfolios allocate at least 4.8 times more capital to low-carbon energy than to fossil fuels by 2030 to remain consistent with a 1.5°C warming pathway. Our analysis shows that the major Canadian lifecos fall short of this benchmark:
- Manulife invests roughly $2 of its client premiums in renewables for every $1 in fossil fuels; (estimate)
- Sun Life invests at a ratio of 0.9:1; (estimate)
- Great-West Lifeco trails at 0.28:1.(company data)
These lifecos can declare ambitions to increase their own investments in renewables and climate solutions, thereby progressing towards their net-zero commitments and also supporting their policyholder health. This would bring them in line with a growing number of their peers, including AXA IM, Allianz, RBC, National Bank, and the Co-operators.
The report outlines concrete strategies for investors engaging with lifecos.
