The Pension Fund, Canada’s Second Largest Pension Fund, Unveils New Climate Goals
TORONTO, Sep 28 (Reuters) – Caisse de depot et placement du Quebec, Canada’s second-largest pension fund, on Tuesday announced plans to completely withdraw from oil production by the end of 2022 and reduce intensity 60% carbon by 2030.
As part of the same plan to achieve net zero emissions by 2050, Caisse montréalaise plans to hold green assets worth C $ 54 billion ($ 42.68 billion) by 2025 and devote C $ 10 billion for the decarbonisation of carbon emitting sectors.
Pension funds around the world are under pressure to act on climate change, with several programs announcing divestments from fossil fuel companies this year. Read more
The new issuance targets for the Caisse, which has C $ 390 billion in assets, follow the September 16 announcement by the Ontario Teachers’ Pension Plan Board (OTPP) of new interim plans to reduce emissions. Read more
While oil production assets currently represent 1% of the Fund’s portfolio, the pension fund has indicated that it wants to dispose of it to avoid contributing to the growth in the global oil supply.
At the same time, it aims to boost the supply of renewable energies, sustainable transport and real estate and invest in new sectors, such as green hydrogen, batteries, transport electrification and carbon capture. .
La Caisse plans to move towards net zero emissions through investments in less carbon intensive assets, carbon budgets for each investment team and bonuses linked to climate targets.
“With this new strategy, we are demonstrating our leadership as an investor and entering the next phase of climate investing,” said Charles Emond, President and CEO of the Caisse, in the press release.
“We believe this is in the best interests of our depositors, our portfolio companies and the communities in which we invest.”
The pension said on Tuesday it had exceeded its climate targets, reducing the carbon intensity of the portfolio by 38% since 2017.
($ 1 = 1.2652 Canadian dollars)
Reporting by Maiya Keidan Editing by Bernadette Baum
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