Quebec pension giant participates in the ‘economy of genocide,’ UN report says

The Caisse de depot et placement du Quebec (CDPQ) head office in downtown Montreal, Wednesday, August 16, 2023. (Christinne Muschi/The Canadian Press)

Quebec’s largest public pension fund manager, The Caisse de dépôt et placement du Québec (CDPQ), has been accused of participating in the “economy of genocide” in Gaza, according to a United Nations (UN) report.

The CDPQ has invested $9.6 billion in companies that are allegedly profiting from the Israeli-Palestinian conflict, according to the UN Special Rapporteur on the situation of human rights in the Palestinian territories occupied since 1967, Francesca Albanese, in her report entitled “From the economy of occupation to the economy of genocide,” released on Thursday.

Albanese accuses 48 companies of profiting financially from the conflict by supplying military equipment or purchasing Israeli government bonds.

“We must stop all this,” Albanese pleaded in French at an online press conference. “The profits these companies are making are a measure of their involvement in this genocide. It is an economy that supports Israel. Instead of sanctioning it, we are supporting it.”

She recommends an embargo on arms sales to Israel. “It’s time for companies to cut ties with Israel,” Albanese added in another response in English.

“Engaging in something that generates economic gains and profits is problematic.”

The report specifically targets the CDPQ, as its investments in three targeted companies increased from 2023 to 2024. The report criticizes the institution for holding shares in these companies, “despite its responsible investment and human rights policy.”

The report cites the example of the investment in Lockheed Martin, which tripled between 2023 and 2024. The report accuses the American company of profiting from the sale of its military aircraft to Israel.

“After October 2023, the F-35 and F-16 played a key role in providing Israel with unprecedented air power, enabling it to drop approximately 85,000 tons of bombs, most of them unguided, killing and injuring more than 179,411 Palestinians and devastating Gaza.”

Lockheed Martin states on its website that it is “proud of the central role it has played in ensuring the security of the State of Israel.”

The CDPQ could not be immediately reached for comment.

In May, President and CEO Charles Emond told a parliamentary committee that the situation was not “black and white” when investing in the defense sector.

He also mentioned that some of the Caisse’s investments were not linked to a decision to invest directly in the company, but were rather held passively, replicating a stock market index.

“In the case of Lockheed Martin, one could also argue that it is the same company that manufactures equipment supplied by other governments, American or otherwise, at the NATO level, to defend Ukraine, in particular,” the CEO said.

The Caisse ‘cannot look the other way’

The report is “very important” because it illustrates how the economic system has profited from Israel’s military intervention, said Raymond Legault, spokesperson for the Quebec Coalition for Palestine, in an interview.

He is calling on the Caisse to divest its investments in companies that are profiting from “this genocidal situation.”

“We cannot look the other way and say that, ultimately, our investments in these companies have nothing to do with the crimes that are being committed,” Legault said.

The Caisse’s exposure is even greater than the $9.6 billion identified in the UN report, Legault said. The rapporteur herself acknowledged that the list of companies targeted was not exhaustive.

The Quebec Coalition for Palestine Emergency estimates that the Caisse has invested nearly $27.4 billion in companies that profit from Israel’s military actions.

At a time when increased military spending is a priority for the Carney government, Legault is concerned that defence companies doing business with the Israeli government will benefit.

“There is no indication from our governments, neither the Canadian government nor the Quebec government, of a real willingness to disassociate themselves from their unwavering support for Israel to date.”

This report by The Canadian Press was first published in French on July 3, 2025.

By Stéphane Rolland, The Canadian Press