Canada Pension Plan Investment Board issues 2019 report on sustainable investing
CPPIB says its investments in global renewable energy companies more than doubled to $3 billion in the year to June 30, 2019; up from just $30 million in 2016
TORONTO — Canada Pension Plan Investment Board (CPPIB) has released its 2019 Report on Sustainable Investing, an annual document that outlines the organization’s approach to environmental, social and governance factors.
The report covers how CPPIB is managing issues such as climate change.
Climate change: As part of its climate change program, CPPIB says it launched a bottom-up evaluation framework requiring investment teams to specifically analyze the climate change risks and opportunities of each major investment they are considering. This year’s report also includes details on CPPIB’s climate change scenario analysis and expanded carbon footprint reporting, which includes public and private holdings. CPPIB says it has also developed an initial framework for using key indicators, or signposts, to monitor climate change and the global transition to lower-carbon energy sources.
Investments in power and renewables: CPPIB says its investments in global renewable energy companies more than doubled to $3 billion in the year to June 30, 2019. This is up from just $30 million in 2016. It is partnering with Alberta’ Enbridge Inc., India’s ReNew Power and Brazil’s Votorantim Energia.
“Over the past year, we advanced our goal to be a leader among asset owners in understanding the risks posed, and opportunities presented, by climate change,” said Mark Machin, president & CEO, CPPIB, in a statement. “We’re mindful that fully understanding the implications of climate change — including physical, transition and adaptation risks — will be a continuous process.”