- CPP Investments portfolio and operations commit to be net-zero GHG emissions across all scopes by 2050.
- Will reach net zero by 2050 by: continuing to invest and exert our influence in the whole economy transition as active investors; achieving carbon neutrality for our internal operations by end of fiscal 20231; increasing investment in green and transition assets to at least $130 billion by 20302; and building on our decarbonization investment approach.
- Commitment is a continuation of the organization’s long and successful track record of integrating ESG considerations, including climate change, into investment activities.
Toronto, CANADA (February 10, 2022) – Canada Pension Plan Investment Board (CPP Investments) today announced that we are making a commitment for our portfolio and operations to achieve net-zero greenhouse gas (GHG) emissions across all scopes by 2050.
To meet this commitment, CPP Investments will:
- Continue to invest in and exert our influence in the whole economy transition as active investors, rather than through blanket divestment.
- Achieve carbon neutrality for our internal operations by the end of fiscal 20231.
- Increase our current investments in green and transition assets from $67 billion to at least $130 billion by 20302.
- Build on our new decarbonization investment approach that seeks attractive returns from enabling emissions reduction and business transformation in high-emitting sectors.
“The impacts of climate change on the investment landscape are undeniable and have fundamentally transformed the nature of business risks and opportunities. As a capital provider and partner, and with our experience, expertise and financial resources, we recognize the valuable contribution we can make to this challenge,” said John Graham, President & Chief Executive Officer. “Committing our portfolio and operations to net zero by 2050 will help us manage the risks, capture the opportunities, and deliver on our public purpose – to help generations of Canadians build financial security in retirement.”
This commitment is made on the basis of, and with the expectation that, the global community will continue to advance towards the goal of achieving net-zero GHG emissions by 2050. These advancements include the acceleration and fulfilment of commitments made by governments, technological progress, realization of corporate targets, changes in consumer and corporate behaviours, and development of global reporting standards and carbon markets, all of which will be necessary to help enable us to meet our commitment. CPP Investments is dedicated to staying ahead of these developments that will impact our portfolio’s path to net zero.
“Our commitment to achieving net zero by 2050 is aligned with how CPP Investments has been incorporating ESG considerations – in particular climate change – into our investment decisions for more than a decade,” said Deborah Orida, Global Head of Real Assets & Chief Sustainability Officer. “We believe the performance of our portfolio and the generation of long-term investment returns relies upon our ability to adapt to a global economy that is moving toward net zero.”
Fulfiling this net-zero commitment will be done in accordance with CPP Investments’ Climate Change Principles which are focused on a sophisticated, long-term approach:
- Invest for a whole economy transition;
- Evolve our strategy as transition pathways emerge and global standards for decarbonization materialize;
- Exert influence to create value and mitigate risk;
- Support a responsible transition based on our Investment Beliefs and expertise; and
- Report on our actions, their impacts and our portfolio emissions.
This commitment follows significant advancements made by CPP Investments in 2021 including the appointment of the organization’s first Chief Sustainability Officer, the proposal of a reporting framework that guides companies to project their capacity to abate GHG emissions, and the launch of our investment approach focused on attractive opportunities to support the decarbonization of essential, high-emitting businesses.
CPP Investments’ position paper on how it will achieve net zero by 2050 can be found on cppinvestments.com.
Notes to editors
1 Across Scope 1 and 2 GHG emissions and business travel emissions, which fall within Scope 3.
2 Figures as at December 31, 2021. We arrived at our definition of green and transition assets by considering different frameworks and taxonomies, including the E.U. Taxonomy. We consider an asset to be green when at least 95% of its revenue can be classified as being derived from green activities, as classified by the International Capital Markets Association. We consider an asset to be transition if it has announced its commitment to net zero with a credible target and plan and is making meaningful contributions to global emissions reduction.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2021, the Fund totalled $550.4 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.