CDPQ announces investment strategy to address climate change
MONTRÉAL, Oct. 18, 2017 /CNW Telbec/ - La Caisse de dépôt et placement du Québec (CDPQ) announced today its investment strategy to address climate change. This strategy covers the entire portfolio and sets out targets and actions for CDPQ to make a constructive contribution, as an investor, to the transition toward a low carbon global economy and to seize profitable investment opportunities.
"In the wake of the Paris Agreement and changing consumer choices and technology, we are already seeing markets undergoing rapid change. This new reality has prompted us to review the risk-return profile of several industries and companies. It will also create new attractive investment opportunities for our clients," said Michael Sabia, President and Chief Executive Officer.
"Our strategy is based on a fundamental commitment. From now on, climate change will factor in each and every investment decision we make across the breadth of our portfolio. In building this strategy, we have undertaken a thorough analysis of markets and institutional investors' best practices. We have also been guided by our longstanding conviction that we need to think and act as builders, in everything we do. This is why we set a short-term target to increase our investments in low carbon assets by over $8 billion, and a medium-term target to reduce our carbon footprint by 25% per dollar invested. These objectives are ambitious, achievable, and measurable, and we'll report on our progress toward them every year," he added.
This strategy is a first step for CDPQ, which will be better positioned to seize profitable investment opportunities and contribute to the fight against climate change. It includes:
Factoring in climate change in every investment decision CDPQ is prepared to accept the challenge of implementing this strategy, as its assets will increase significantly over the eight years the strategy covers. For example, if CDPQ's assets were to grow 60% by 2025, climate change would be a factor in our decision-making on $170 billion of new assets. Going forward, we will treat climate change in the same manner as we treat risk: as fundamental in our decision-making process.
An $8-billion increase in low carbon investments over three years CDPQ is already among the world's largest investors in renewable energy, and we are committing to invest even more. As global efforts to fight climate change intensify, CDPQ's clients will benefit from the many new investment opportunities that will materialize in the coming years. In the short term, by 2020, we will increase our low carbon investments by 50%, representing more than $8 billion in new investment. This strategy will also give us the opportunity to contribute, through our investments, to the development of a variety of industries with low carbon footprints.
A 25% reduction in its carbon footprint per dollar invested by 2025 In the medium term, between 2017 and 2025, CDPQ commits to reducing the carbon intensity of our overall portfolio by 25%. This makes CDPQ the first institutional investor in North America to set a carbon target covering all of its asset classes. CDPQ's efforts will support the targets of the COP21 Paris Agreement. As part of this strategy, we will review the risk-return profile of our investments and reduce our exposure to the assets with the highest carbon intensity in our portfolio, such as activities related to coal.
Beginning in 2017, CDPQ will disclose information and data on our portfolio's greenhouse gas (GHG) emissions as part of our annual report. We will report on our progress toward the investment targets set to address climate change.
The methodology used to measure the portfolio's carbon footprint will be aligned with international best practices and validated by CDPQ's auditors as part of their annual audit of financial information.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
Erie Insurance (ERIE) has received the 2024 Best Employers: Excellence in Health & Well-being award from Business Group on Health. The annual corporate awards program recognizes companies across diverse sectors for advancing employee well-being...
The Aurora Humanitarian Initiative today announced its lineup of global thought leaders and local changemakers speaking at the upcoming Aurora Prize for Awakening Humanity events. They will convene May 8-10 at the UCLA Meyer and Renee Luskin...
BHP and Carlton Trail College are pleased to announce that they have signed a Memorandum of Understanding (MOU) to enhance educational and training opportunities for the mining industry in Saskatchewan. BHP and Carlton Trail College have worked...
Arthritis is a crippling disease, affecting approximately one in four adults. It wreaks havoc on our joints by breaking down cartilage, the cushioning between bones. Once that cartilage deteriorates, there's no way to replace it. However, all this...
Communication Technology Services (CTS), an in-building and campus connectivity solution provider, is proud to announce the opening of its new office in Carrollton, Texas. This expansion marks an important milestone for the company as it continues to...
SouthStar Energy Services®, a member of the Southern Company family of companies, has entered into a groundbreaking alliance with two Historically Black Colleges and Universities across its multi-state business footprint. This new partnership with...