In 2020, you’ll be hearing a lot about clarity of vision. For us, as we embark on a new decade and navigate an unprecedented economic growth cycle, our sense of purpose has never been clearer.
Which is why we recently adopted a new tradename, CPP Investments, to better reflect who we are and what we do: a professional, independent, global organization working to invest the CPP Fund for generations to come.
We are coming off one of the best 10-year runs for asset returns in history. As a long-term investor with a secure capital base, we’re well positioned to power through cycles. Yet, as we do, the persistent and changing nature of climate change will challenge us to be even more nimble, agile and ambitious.
Well over a decade ago, we identified climate change as a major investment consideration, especially for exceptionally long-term asset owners like ourselves.
Last year, we integrated climate change considerations more deeply into our investment process, requiring our teams to perform bottom-up analyses of climate change risks and opportunities on all of our material investments. In this newsletter, we’re sharing with you how we’ve intensified our work on climate change and the steps we’re taking to be a leader in understanding the risks and opportunities.
In December 2019, the most recent Actuarial Report on the Canada Pension Plan concluded that the CPP Fund – both the base and additional portions – continues to be sustainable over a 75-year projection period at the current legislated contribution rates.
To help sustain that momentum, we continue to pursue genuine diversification to build resilient portfolios that outlast cycles. That means looking for investments with real technological differentiation, as well as building out parts of our portfolio with lower volatility, including Infrastructure and Power & Renewables.
In a climate of dire predictions about the state of our planet, we need to be acutely aware of the risks without losing sight of the opportunities before us.
This is our commitment to Canadians.
~ Mark Machin, President and CEO