Now that it has exited oil and its objectives for 2030 are practically achieved, the Caisse de dépôt et placement du Québec (CDPQ) will adopt new targets in terms of sustainable development.
“Once the target is reached, there is only one good option, to raise it,” says Charles Emond, president and CEO of the CDPQ, presenting the Sustainable Investing Report for 2023.
The Caisse committed in 2021 to reducing the carbon footprint of its portfolio by 60% in 2030. In 2023, it came very close to the goal, with a reduction of 59%.
It is not because this objective was not ambitious enough, assures Marc-André Blanchard, first vice-president and global head of sustainable investment, during an interview with The Press.
If you look compared to our peers, our goals were extremely ambitious. We were very effective in developing our strategies to achieve this.
Marc-André Blanchard, Senior Vice-President and Global Head of Sustainable Investment at the Caisse de dépôt et placement du Québec
According to him, the Caisse can be proud of having 80% of its portfolio made up of assets with a low carbon footprint and of having worked on several fronts to advance the energy transition.
Marc-André Blanchard points out, for example, that the Caisse supported 62% of shareholder proposals that concern environmental issues during the annual company meetings in which it participated. The Royal Bank, for example, has just committed to publishing each year the share of loans it grants in the fossil fuel and renewable energy sectors, following a shareholder proposal that the Caisse supported .
In terms of energy transition, what remains to be done is probably more difficult, recognize the leaders of the Fund, particularly in sectors that are difficult to decarbonize such as transport, cement and steel.
It will take partnerships with governments, civil society and investors to achieve further reductions.
Bertrand Millot, head of sustainable investment at the Caisse de dépôt et placement du Québec
He gives the example of electric cars, which run without oil but which are manufactured with “full carbon” components.
No oil, but still gas
In 2023, the Fund sold its last investment linked to oil production and it no longer finances oil production or transport activities.
However, there is no question for the Caisse of giving in to pressure from environmentalists and completely abandoning fossil fuels, because it considers natural gas as an essential energy for the energy transition.
There are $16 billion worth of investments in natural gas production in the Caisse’s portfolio. The bulk of investments in this sector are concentrated in gas transport and distribution, activities which account for 1.6% of its total portfolio of 434 billion.
The Caisse is the majority shareholder of Énergir and closely follows the company’s efforts to reduce its carbon footprint by increasing the share of renewable natural gas it distributes. “It’s complicated for them, but it’s moving forward,” says Bertrand Millot, who believes that Énergir is a case of a company that needs partners like Hydro-Québec and the government to succeed.
THE Sustainable Investing Report that the Caisse de dépôt publishes each year is a mixture of a ton of information on its commitments in terms of energy transition, governance and social values which come with standards, certifications and various actions of all kinds which make understanding and criticism difficult. The Caisse’s managers agree that a simplification of standards would be desirable for everyone.