Our sustainability-related disclosures are available in the following documents:

• Annual Report

  : Information related to governance, risk management, targets and metrics (Pages 22-23, 26-27, 42, 66-68).
• Annual Proxy Voting Report

  : This report details our proxy voting activities covering the period from July 1, 2023 – June 30, 2024.
• Annual Green Bond Impact Report

  : This report details our green bond activities covering the period from April 1, 2023 – March 31, 2024.
  
• Annual Modern Slavery Report

  : CPP Investments’ report pursuant to Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act covering our fiscal year of April 1, 2023 – March 31, 2024.

To protect and grow the Fund, we must identify and manage material business risks and opportunities that could impact the value of our investments – including sustainability-related factors. Sustainability integration is the appropriate consideration of sustainability-related factors at every stage of the investment lifecycle – from due diligence, asset management, to the point of exit.

We believe that considering the financial impact of these factors leads to more informed investment decisions, which in turn can contribute to higher returns and lower risk.

We define sustainability-related factors as those including but not limited to: board governance; climate change; nature and the environment; equity, diversity and inclusion; health and safety; community engagement; human rights; responsible sourcing; responsible deployment of artificial intelligence; and data and cyber security.

At CPP Investments, our mandate is to maximize returns without undue risk of loss while taking into consideration the factors that affect the funding of the Canada Pension Plan.

We believe companies that effectively anticipate and manage material sustainability-related factors are better positioned to be more profitable and resilient over the long term.

By incorporating these factors in our investment strategy and asset management activities, we aim to make better informed investment decisions that drive stronger returns for Canadian contributors and beneficiaries.

Achieving net zero by 2050 remains a widely adopted goal and critical ambition for many countries, companies and international organizations – this presents both risks and opportunities for long-term investors. Recent legal developments in Canada have introduced new considerations around how net-zero commitments are interpreted. In particular, there is increasing pressure to adopt standardized emissions metrics and interim targets, many of which don’t reflect the complexity of a global investment portfolio like ours.

Forcing alignment with rigid milestones could lead to investment decisions that are misaligned with our investment strategy. To avoid that risk – and to remain focused on delivering results, not managing legal uncertainty – we have made a considered decision to no longer maintain a net-zero by 2050 commitment.

What hasn’t changed is our conviction that sustainability integration helps create enduring value for Canadians. Sustainability remains embedded in how we manage risk and pursue investment opportunities, guided by our Climate Change Principles and Investment Beliefs.

Sustainability risks and considerations are embedded into our decision making across the Fund – guided by our Climate Change Principles and Investment Beliefs.

These are vital financial considerations, and we believe sustainability integration helps create enduring value for Canadians.

As a long-term investor, our role in the global economy’s transition to net zero is to help finance emissions reduction in the real economy in line with our investment strategy. Here are some of the ways we’re doing so:

• The investment portfolios’ carbon intensity has declined – while we believe the path will be non-linear, our investment portfolios’ carbon intensity declined by 41% since fiscal 2020.
• Reduced our operational footprint – business travel emissions declined by 28% since fiscal 2020.
• Held board directors accountable by exercising our governance rights in accordance with our PVPGs – 457 votes against weak climate oversight in the last three years.
• 28 companies in our portfolio completed a decarbonization assessment with our support – representing 25% of our emissions. The sum of these assets’ total Scope 1 and 2 emissions is 5.5 million tonnes of CO2e.
• $10.8B in Green Bond Issuance – these assets are things like green buildings and renewable wind and solar assets.
• $14B invested in renewable assets – these include public assets defined using Global Industry Classification Standard (Renewable Electricity) and private assets with more than 90% of revenue from renewable energy sources such as wind, solar, hydro and geothermal.

We will continue to share details on how our actions finance emissions reduction while also managing the Fund in the best interests of contributors and beneficiaries.

Blanket divestment from sectors like oil and gas can have unintended consequences, such as pushing activities to less transparent, private markets. We focus on supporting our portfolio companies in their ambitions to reduce their carbon emissions. We also exercise our governance rights with the goal of ensuring portfolio company boards demonstrate appropriate oversight of climate change risks and opportunities when setting corporate strategy.

We will engage with companies by encouraging progress on decarbonization and applying constructive pressure. However, where appropriate and in line with our investment strategy, we will sell an asset if we believe a company is not appropriately managing material sustainability-related risks, thereby potentially hindering its ability to create value.

Advancing global standards for sustainability disclosure is a step toward ensuring that comparable, decision-useful material information is available to directors, policy makers, and investors to help move the economy towards an end state that is sustainable by design. Engaging in this work and contributing to the development of global standards is one way we help shape that future and deliver on our mandate.

We actively participate in domestic and global discussions to share our views on emerging regulation, market norms, standard-setting, and best practices. See our Collaboration page for a full list of our memberships and initiatives.