Strong ambitions, targets achieved

Let’s take a step back. In 2017, CDPQ launched its first climate strategy, which put the organization’s leadership at the forefront of sustainable investing worldwide. Four years later, we raised and expanded our ambitions, based on clear and measurable objectives.

Today, having achieved our targets faster than anticipated, I would like to congratulate our teams for the colossal work that has been accomplished.

We have reduced the carbon intensity of our portfolio by 69% and more than tripled our low-carbon assets, which now amount to $58 billion, compared to 2017, as well as closely supported portfolio companies as they transitioned to more sustainable business models and completed our exit from oil production. In doing so, we have taken decisive action to decarbonize our portfolio, which today has close to 80% of assets that are low-carbon or low-intensity.

These are major initiatives that were well executed. And above all, we should never lose sight of the fact that this strategy has enabled us to generate excellent performance for our depositors.

Our figures bear that out: over five years, the annualized return of our approach to the energy transition has reached nearly 12%, compared to the MSCI ACWI Energy index’s position of roughly 8%. Our return was stimulated by renewable assets, which generated performance that was twice as strong as that of the oil segment of the MSCI ACWI for the period.

In short, it is possible to perform well while benefiting the planet and future generations.

Achievements beyond climate

In addition to what has been achieved to address climate change, we have made progress on other issues, such as social aspects.

Our international taxation commitment, which is aligned with the recommendations of the Organisation for Economic Co-operation and Development (OECD), remains an important focus of our approach so that businesses adopt the most responsible behaviour in their own communities. We were one of the first investors in the world to make such a commitment, convinced that fair taxation promotes stronger economies.

In addition, we have also made advancements on representation. For example, 47% of our employees are women and 27% of our employees in Québec and Canada identify as members of visible or ethnic minorities or as Indigenous people. Beyond the statistics, what does this mean? It means that we can benefit from broader perspectives, a more varied range of experiences, and therefore richer reflections and deeper debates, to better fulfil our role and cover all the angles.

A more difficult environment going forward

It goes without saying that more difficult years lay ahead. Global geopolitical tensions could create upheavals, and even lead to lost ground, especially in the energy sector. Does that make us want to change course? No. Headwinds only test our convictions.

As such, we will need to continue finding the balance between ambition and pragmatism in our approach to take into account the current environment that companies are navigating.