Alberta to insulate AIMCo from liability, companies from greenwashing allegations

Alberta Finance Minister Nate Horner presents the Alberta 2025 budget in Edmonton, Thursday, Feb. 27, 2025. THE CANADIAN PRESS/Jason Franson

Alberta is moving to insulate its Crown investment corporation from potential legal liabilities and protect companies in the province from lawsuits accusing them of greenwashing.

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The wide-ranging legislation proposed Tuesday by Premier Danielle Smith’s government aims to protect the Alberta Investment Management Corp. -- which manages public sector pensions -- after it recorded about $2 billion in investment losses from a risky investment strategy in 2020.

Finance Minister Nate Horner said AIMCo has no cash set aside to cover potential liabilities of at least $1.3 billion being claimed by some public sector pensions, and the government isn’t willing to put that cost onto the backs of taxpayers.

“We’ve had lots of conversations about the borrowing the province is already undertaking, and it’s something we’re not willing to entertain,” he told reporters before tabling the bill.

After management overhauls at AIMCo, Horner said the investment strategy that began making headlines five years ago has been “remedied.”

“This isn’t an issue going forward,” he said.

He added that no one with a defined-benefit plan will see their pensions affected. AIMCo oversees almost $180 billion in assets, including the pension funds of hundreds of thousands of Albertans.

The legislation, if passed, will shield companies in the province from unfair lawsuits when they make good-faith climate-related financial disclosures.

Horner said the aim is to protect them from “frivolous” lawsuits, and the Alberta Securities Commission will have the ability to adjudicate what is or is not a good-faith claim, based on the best information they have available.

It comes after a shareholder advocacy group filed a complaint with the Alberta Securities Commission earlier this year alleging two of the province’s largest energy companies misled investors in their environmental disclosures.

Government officials said a federal anti-greenwashing law -- long the target of criticism from Smith’s United Conservative government -- did not inspire the legal changes.

The new rules could only regulate activities within Alberta.

Under the bill, the securities commission will have more power to try to stop the spread of misinformation, particularly through social media, with new penalties to be determined.

Horner said it’s about protecting investors from people who don’t have to disclose their interest or intent and are attempting to drive the value of a stock up or down.

He said the application of penalties will be very narrow, as the government is mindful of protecting free speech.

“It doesn’t allow you to defraud someone,” he said.

The commission will be given the power to halt the trading of a stock for up to 15 days if false or misleading information is circulating.

Opposition NDP finance critic Court Ellingson said they’re concerned some public pension plans, despite having defined benefits, may be forced to levy higher premiums on workers to ensure retirement benefits remain.

“At the end of the day, someone’s going to be on the hook for that, and if the government is protecting AIMCo from being on the hook, who is on the hook?” he said.

Ellingson said when it comes to protecting companies from unfair lawsuits for their environmental claims, or penalizing people for misinformation that affects the stock market, it’s unclear how important ground rules will be written in regulations.

“Many Albertans have legitimate concerns about the actions of companies, and they need to still be able to voice those concerns as citizens in this province,” he said.

This report by The Canadian Press was first published Nov. 25, 2025.

Lisa Johnson, The Canadian Press