How One of Canada’s Largest Pension Funds Is Incorporating ESG in Its Portfolio
As allocators and fund managers alike scramble to incorporate diversity and climate change into their strategies, one of Canada’s largest asset owners has released its latest report on how, exactly, a C$365.5 billion pension fund does it.
The Stewardship Report, released Wednesday by Caisse de dépôt et placement du Québec (known colloquially as CPDQ), details the fund’s 2020 efforts toward sustainability and diversity.
In the report, CPDQ said it is tying employees’ variable compensation to the achievement of certain climate targets and targeting 30 percent representation of women on boards at the public companies it invests in, among several other initiatives.
Going Green
CPDQ’s climate initiative targets were first laid out in 2017, according to a letter from Charles Emond, its president and CEO, and Kim Thomassin, CPDQ’s executive vice president who heads up investments in Quebec and stewardship investing.
By the end of 2020, the pension fund had targeted C$32 billion (USD $26 billion) invested in “low-carbon” assets, which includes renewable electricity, real estate, and transportation and industrials. CPDQ ended up hitting C$36 billion in low carbon assets last year, and is now reassessing its targets moving forward.
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