CPP Investments Announces Climate-Related Goals to Achieve by 2050

Published on: 17 February 2022 01:36 PM
by KnowESG

A Brief Summary

One of the biggest pension funds in the world, the Canada Pension Plan Investment Board (CPP Investments), announces their commitment to achieving net-zero greenhouse gas (GHG) emissions across all scopes by 2050.

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The firm has pledged to uplift investments in ESG-related areas and will continue to influence active investors to drive towards a carbon-free world. CPP investment targets carbon neutrality in their internal operations by the end of 2023, increasing current investment in green assets from $67 billion to at least $130 billion by 2030. 

John Graham, CPP Investments President & Chief Executive Officer, said: “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. 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.”

The firm states that commitments are made to drive and advance the global economy towards achieving net-zero GHG emissions by 2050. Those advancements include achieving and fulfilling commitments made by governments, technological progress, the realization of corporate targets, changes in business and consumer behaviours, and the development of global reporting standards. Everything becomes significant and helps them meet their commitments. 

Deborah Orida, Global Head of Real Assets & Chief Sustainability Officer at CPP Investments, said: “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. 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.”

In 2021, CPP Investments made some advancements:

1. Appointed Chief Sustainability Officer.

2. Proposed a framework to reduce GHG emissions.

3. Launched an investment approach