The Pension Investment Association of Canada will monitor the ongoing progress of several policies related to environmental and sustainability solutions.
Last year’s federal budget indicated greenwashing provisions would be coming to the Competition Act at a time when the pension association has advocated for clear and flexible environmental, social and governance reporting guidelines, which would help prevent greenwashing and greenhushing tactics, said Asif Haque, chair of the board at PIAC and the chief investment officer at the CAAT Pension Plan, in an emailed statement to Benefits Canada.
Read: PIAC urging CSA to resume work on climate disclosure mandate
Similarly, the association wants to see the government establish a globally-aligned climate-related financial disclosure rule set to help streamline climate consideration in institutional investment decision-making. The rule would be essential in developing Canada’s economic edge, he said, noting it could also improve durability amid the financial, economic and societal costs of climate change.
The feds are moving ahead with a Canadian made sustainable investment guideline and Haque said PIAC will monitor its progress throughout the year. “Taxonomy development plays a crucial role in the net-zero transition by guiding and mobilizing green and transition capital.”
It will also continue to push for the reinstatement of a real return bonds program in Canada’s fixed income market. Last year’s budget failed to address whether the asset would make a comeback, but Haque said a return would restore a critical tool for managing inflation risk and strengthen Canada’s investment landscape.
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Continuing one of its trends from last year, PIAC will continue to monitor the harmonization of the regulatory framework for variable payment life annuities, which Haque said provides “a much-needed decumulation solution for defined contribution plans, addressing a gap in retirement planning that was once overlooked.”
It’s also advocating for the implementation of a single going-concern plus funding framework. A shift away from dual funding regime in favour of a unified funding framework would strengthen the long-term sustainability of defined benefit pension plans, he said.
In 2026, the organization will also monitor ongoing challenges from geopolitical uncertainty, which is increasing market volatility and regulatory risk across key markets. Long-term risk assessment is more complicated in an environment with “trade tensions and shifting alliances,” he added.
Read: PIAC, ACPM asking federal government to bring back real return bonds
Global institutional investors are facing uncertainty from increasing international policy divergence, which is also complicating ESG and stewardship efforts for pension plans and external managers, according to Haque. This challenge is particularly seen through recent rollbacks of shareholder rights and corporate governance standards in the U.S., he said.
For the association, 2025 was defined by growth in reach and services to members, and through a new strategic plan it will continue building on its influence and effectiveness. Haque said 2025 was a year of increased deployment of pension plan capital in the domestic market for PIAC members.
“Without compromising our members’ fiduciary duty to pension plan beneficiaries, government can create the necessary conditions for increased domestic investment. Importantly, our members can offer government valuable insights into strategies for enhancing this investment opportunity.”
Read: Unified ‘going-concern plus’ regime, reinstating real return bonds among PIAC’s 2025 priorities