CPPIB commits to net zero by 2050

Canada Pension Plan Investment Board has committed to be net-zero greenhouse gas emissions across all scopes by 2050.

The Canadian public pension fund, which has C$43 billion ($34 billion) of real estate assets under management worldwide, plans to achieve carbon neutrality for internal operations by the end of the 2023 financial year and increase investment in green and transition assets to at least C$130 billion by 2030, from C$67 billion.

The fund will also take a “decarbonisation investment approach”, which involves enabling emissions reduction and business transformation in high-emitting sectors. This may involve refurbishing or redeveloping real estate assets to be more sustainable. CPPIB also said it would continue to be an active investor in helping the economy transition to zero emissions, rather than achieving its goal through “blanket divestment”.

Any interim targets would be “imprudent”, CPPIB said, due “inconsistent emissions data and limited disclosure on the feasibility of corporate transition plans”. It also said its commitment was on the basis that the global community would seek to achieve net zero by 2050. 

“Our commitment to achieving net zero by 2050 is aligned with how CPP Investments has been incorporating ESG considerations – in particular climate change – into our investment decisions for more than a decade,” said Deborah Orida, global head of real assets and chief Sustainability Officer. “We believe the performance of our portfolio and the generation of long-term investment returns relies upon our ability to adapt to a global economy that is moving toward net zero.”

As at June 30, 2021, CPPIB's real estate portfolio included 403 green building-certified or pre-certified assets across 27 countries.