The recently released Caisse de dépôt et placement du Québec (CDPQ) December 31, 2022, year-end report shows that the Quebec public pension has at least $14B of contributors and pensioners money invested companies complicit with Israeli war crimes.
This includes $2.4+B investments in a dozen companies (up from 10 from last year) that are listed on the UN Data base as violating international law. These combine with $10 B in other companies complicit with Israeli war crimes, including $3.5B in WSP, the Montreal head-quartered company that is currently under investigation to be added to the UN data base. CDPQ also has majority ownership in Allied Universal (which purchased G4S) of at least $1.5 B (but more likely much more, perhaps around $7B or even more).
“Similar to the last two years, the CDPQ continues to invest heavily in Israeli war crimes, approaching at least 5% of the total portfolio” says Bruce Katz a retired Montreal school teacher and cofounder of Palestinian and Jewish Unity. “It is upsetting that the CDPQ continues to be invested in companies that are named in the United Nations (UN) Database of companies complicit with human rights violations by Israel against the people of Palestine,” says John Philpot, a Montreal based lawyer and on the board of Just Peace Advocates. Of the 112 companies listed in the UN database, at least 12 companies are included in CPP (Canadian Pension Plan) investments.
“It is alarming that WSP, a Montreal based company, whose major shareholder includes the Caisse de dépôt et placement du Québec, has been contracted to plan, design, maintain, and extend the Jerusalem Light Rail (JLR), an Israeli public tramway system that contributes to the maintenance of illegal Israeli settlements in occupied and annexed Eastern Jerusalem,” Bruce Katz adds.
The report to the UN indicated that WSP facilitates the practice of forcible transfer of settlers into the occupied Palestinian territory (OPT), through its construction and servicing of the JLR, while deepening the physical, social and economic integration of the illegal settlements.
Over 80 companies beyond those on the UN data base have been identified in CDPQ 2022-year end holdings. These companies include Teva Pharmaceutical Industries Ltd., Hewlett Packard and many others for a value estimated to be over $10B.
In April 2021, Allied Universal, a leading security and facility services company in North America, announced the acquisition of G4S. It is to be noted G4S held 50% of Policity Ltd., a company contracted to build and run Israel’s National Police Academy, as well as provide training. It is indeed alarming that CDPQ is reported to own 80% of Allied Universal.
When recently challenged about the Allied Universal holding, a Caisse spokesperson indicated by email to the Globe and Mail that the Caisse “is one of the world’s most respected investors when it comes to ESG criteria – which we apply rigorously and consistently.” They continued, “There is no exception with this investment, and we have an active ongoing dialogue with the company across a number of strategic matters. When Allied acquired G4S, they communicated plans to evaluate options for certain non-core businesses and these conversations are ongoing.” Speaking for Palestinian and Jewish Unity, Chadi Marouf indicated “that the response by the Caisse does not give any confidence that Quebec’s pension plan is serious about human rights and international law violations, but even if the investment in Allied Universal was to be dropped outright there are billions more dollars of taxpayers’ money invested in companies complicit in Israeli war crimes.”
Recently divestments involving companies complicit with Israeli war crimes were made by public pension plans such as in Norway and New Zealand. The companies were excluded based on unacceptable risk associated with the systematic violations of international law by the companies. “It would be expected that CDPQ should conduct a similar analysis of investments of their portfolio,” added John Philpot.
Denis Kosseim, an academic from Montreal said what is required is for the CDPQ is for the CDPQ to “divest immediately from the United Nations (UN) identified companies held by CDPQ and ensure that no investments in the future include these UN identified companies. This includes the divestment from Montreal based WSP Global while the UN investigation is underway related to its activities in the Jerusalem light rail.” Beyond this Kosseim suggested that “there needs to be a complete review of the full CDPQ portfolio for any other investments that are in violation of international law, and the CDPQ needs to put in place a transparent process to ensure that companies are vetted for violations of human rights and international law.
These concerns are raised in the broader context of ethical investment related to Quebec’s public pension fund investment including in mining, fossil fuels, military, private health care, and other issues of justice and humanitarian concern. The CDPQ is entrusted with fiduciary trust of Quebec’s public pension plan and is expected to undertake enhanced due diligence to ensure that its investments in conflict affected areas are in line with Canada’s responsibility under international and domestic law.
For information: bdscoalition@gmail.com
