It’s been nearly two decades since we first published details on our sustainable investing activities. Since then, we’ve chosen to participate in initiatives that can help make us, and other investors, more effective and efficient for decades to come.
Our collaboration efforts are focused on the following areas:
Improve transparency and standards
Our Chief Sustainability Officer chairs the International Sustainability Standards Board (ISSB) Investor Advisory Group and one of our senior sustainability professionals is the Co-Chair of the ESG Data Convergence Initiative.
While sustainability reporting has been around for a while, there have been industry-wide challenges in doing it effectively - including a lack of comparability and confusion about the ESG ‘alphabet soup’ of initiatives. As a result, capital markets have not been working as efficiently in this space as they could. Improved reporting standards are designed to create a common language for disclosing the effect of material sustainability-related factors, including climate change. These disclosures help ensure investors like us can make more informed investment decisions with valuable and relevant information about a company’s prospects.
We bring together the companies in our portfolio that face similar challenges and opportunities. For example, we convene a network of global toll road operators in our portfolio to share insights and best practices. We also conduct novel research to explore transformative forces, such as climate change, using the CPP Investments Insights Institute.
A better understanding of sustainability’s transformative forces and their effect on the investing landscape will help us create enduring value for current and future contributors and beneficiaries.
Participate in regulatory consultations
We regularly provide comments on sustainability-related public consultations, e.g., to the U.S. Securities and Exchange Commission, the International Sustainability Standards Board and others, and participate in discussions with relevant stakeholders, including standard setters, policy makers and regulators
We believe that by providing input into regulatory consultations we can help ensure that our perspective is heard and considered as new rules and standards are being developed.
Promote robust governance practices
We joined Canada’s leading pension plan investment managers to call on the international community to embrace the ISSB’s disclosure framework. We also spearheaded efforts to call on Canadian companies to take action to limit the spread of COVID-19 to protect the nation’s health and welfare.
As Canada’s national pension plan, we uphold the highest standards of transparency and governance and expect our portfolio companies to do the same. Robust corporate governance practices are the bedrock of transparency. That’s why we are proud to be the world’s top-ranked fund on governance – according to a 2023 survey of 75 funds across 15 countries.
Advocate for long-term thinking in the investment and corporate worlds
We were the first pension fund in the world to issue a green bond and in 2016, we co-founded FCLTGlobal, a non-profit organization, that develops actionable research and tools to drive long-term value creation for savers and communities.
As an organization that helps support the stability and financial sustainability of the CPP, we understand the need to think and act long term.