CDPQ reports substantial progress in sustainability, targeting a net-zero portfolio by 2050
CDPQ released its Sustainable Investing Report for the fiscal year ending on December 31, 2023, today, underlining its active role in advancing sustainable finance.
The report details concrete actions CDPQ has taken to enhance its environmental, social, and governance (ESG) impact.
In the environmental domain, CDPQ is progressing towards its 2021 climate strategy goals, including a net-zero portfolio by 2050. The organization boasts $53bn in low-carbon assets, with $15n in Québec, marking a $35bn increase since 2017.
It also highlights over $330bn in assets with a low-carbon footprint, nearly 80 percent of its total portfolio, and a 59 percent reduction in portfolio carbon intensity since 2017.
Furthermore, CDPQ has completed its exit from oil production and thermal coal mining and invested $5bn in transitional assets to decarbonize high-emitting sectors.
On the social front, CDPQ focuses on building inclusive communities and integrating social factors across its activities. Currently, women represent 46 percent of CDPQ's personnel, with an aim to increase this to 47 percent by 2025.
Moreover, 26 percent of its Québec employees identify as belonging to visible minorities, ethnic minorities, or Indigenous peoples, meeting the set target.
Additionally, 57 percent of its actively managed public companies have at least 30 percent women on their Boards, a more than 39 percent increase in three years, aligning with CDPQ's set targets for diversity and inclusion.
CDPQ also commits to encouraging tax best practices among its portfolio companies, advocating for compliance with a minimum tax rate of at least 15 percent, as recommended by the OECD and supported by the G20.
In governance, CDPQ employs strategies to foster the adoption of best practices, assisting portfolio companies in ESG integration, engaging in 308 discussions to enhance ESG awareness, and leveraging its voting rights to express sustainability convictions.
It has also conducted 278 technology risk analyses to improve the resilience of its portfolio companies.
Charles Emond, president, and CEO of CDPQ, states, “At CDPQ, we remain steadfast in our conviction that sustainability goes hand in hand with long-term returns. And I am proud to see how far we've come and everything our organization has achieved. Now, once a target has been reached, there's only one good option: to raise it even higher.”
“Further evolve our approach. Determine what we can do differently, and even better. This involves taking the full measure of what we can do and leveraging that to improve our overall portfolio's sustainability. Our leadership is recognized at home and abroad, and this is due to the work of our people, their diverse talents and expertise propel us forward.”
Marc-André Blanchard, executive vice-president, and head of CDPQ Global and Global Head of Sustainability, adds, “Today's challenges are tremendous levers for value creation. This is why we have an optimistic approach, both here in Québec and internationally.
“We support our portfolio companies on a day-to-day basis to ensure that they implement solid transition plans and view this journey as a promising business opportunity. We believe that this is the path that leads to achieving our common goals,” she continued.
