In keeping with our mandate to invest the assets of the Canada Pension Plan (CPP) Fund with a view to achieving a maximum rate of return without undue risk of loss, and taking into consideration the factors that affect the funding of the CPP and its ability to meet its obligations, CPP Investments has committed to transition its investment portfolio and operations to achieve net zero greenhouse gas emissions by 2050.
“The impacts of climate change on the investment landscape are undeniable and have fundamentally transformed the nature of business risks and opportunities,” says CPP Investments President and Chief Executive Officer John Graham. “Committing our portfolio and operations to net zero by 2050 will help us manage the risks.”
CPP Investments manages more than half a trillion dollars – money that will support the retirement income foundation of more than 21 million Canadians. As a result of our careful investment of contributions, in 2019 the Chief Actuary of Canada reported that CPP is sustainable over a 75-year projection period.
Navigating the risks and opportunities presented as the global economy transitions to net zero will be a defining challenge of the 21st century.
CPP Investments’ transition to net zero includes multiple actions.
- We’ll continue to influence the companies we invest in, to help accomplish the global economy transition to net zero. We do this through how we vote our proxy and deploy capital.
- We’ll achieve carbon neutrality for our own internal operations by Mar. 31, 2023.
- We’ll continue growing our investments in green and transition assets. Our goal is to have at least $130 billion invested by 2030, up from $67 billion now.
We’ll continue to build our decarbonatization investment approach that seeks strong returns from enabling emissions reduction and business transformation in high-emitting sectors, such as agriculture or real estate, to support industries as they do their part to achieve a low-carbon future.
This is consistent with the proactive approach we’ve taken on environmental, social and governance matters in our investment decisions for more than two decades. We believe that when climate change and the transition to net zero are part of our investment decision-making, we’re better able to create sustainable value for the CPP Fund.