CPP Investments portfolio and operations commit to be net-zero GHG emissions across all scopes by 2050
Canada Pension Plan Investment Board (CPP Investments) announced 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.”
Fulfilling 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.