This enactment amends the Canada Pension Plan Investment Board Act to specify that the investment policies, standards and procedures established by the board of directors shall provide that no investment may be made or held in any entity that engages in certain practices.

Preamble

Whereas the Canada Pension Plan is a major pillar of Canada’s retirement income system and the Canada Pension Plan fund is one of the largest sovereign wealth funds in the world;

Whereas capital markets can have a tremendous impact and influence on environmental and social outcomes;

And whereas Canada, having a long history as a defender of human rights and freedoms, is committed to promoting responsible business practices and holding to account those who violate human, labour and environmental rights;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Considerations

(2) The investment policies, standards and procedures, taking into account environmental, social and governance factors, shall provide that no investment may be made or held in an entity if there are reasons to believe that the entity has performed acts or carried out work contrary to ethical business practices, including

• (a) the commission of human, labour or environmental rights violations;

• (b) the production of arms, ammunition, implements or munitions of war prohibited under international law; and

• (c) the ordering, controlling or otherwise directing of acts of corruption under any of sections 119 to 121 of the Criminal Code or sections 3 or 4 of the Corruption of Foreign Public Officials Act.

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