Canada’s second-largest pension fund says first to exit oil assets
Canada’s No. 2 pension fund, Caisse de depot et placement du Quebec, said Tuesday it will shed all of its oil production assets, valued at C$3.9 billion ($3.08 billion), by the end of 2022 and reduce carbon intensity by 60% by 2030.
It said it would be the first institutional investor in Canada to exit oil production assets.
As part of a plan to reach net-zero emissions by 2050, Montreal-based Caisse plans to hold green assets worth C$54 billion by 2025 and dedicate C$10 billion to decarbonize carbon-emitting sectors.
Pension funds globally are under pressure to act on climate change, with several announcing divestments from fossil fuel companies this year.
The new emissions targets for Caisse, which has C$390 billion in assets, follow the Ontario Teachers’ Pension Plan Board (OTPP)’s Sept. 16 announcement of interim plans to cut emissions.
Oil production assets currently make up just 1% of Caisse’s portfolio, but the fund said it wants to avoid contributing to growth in global oil supply.
It aims to boost the supply of renewable energy, sustainable transportation and real estate and invest in green hydrogen, batteries, electrification of transport and carbon capture.
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