CDPQ Discloses New Climate Strategy

Posted on 09/28/2021

Caisse de dépôt et placement du Québec (CDPQ) disclosed a new plan to fight climate change. CDPQ put in its first climate strategy in 2017.

CDPQ now hopes to have a net-zero portfolio by 2050.

According to the press release, “Two of these pillars build upon the organization’s accomplishments since 2017 while increasing its ambition:

1. Hold $54 billion in green assets by 2025 to actively contribute to a more sustainable economy.
2. Achieve a 60% reduction in the carbon intensity of the total portfolio by 2030.

Two new pillars have been added to move CDPQ’s climate action into the next stage:

3. Create a $10-billion transition envelope to decarbonize the main industrial carbon-emitting sectors.
4. Complete our exit from oil production by the end of 2022.
As a long-term investor, CDPQ designed this strategy with a distinctive approach that will deliver its depositors the return they need while helping meet the enormous challenges of climate change.”

As part of this new strategy, CDPQ plans to commit C$10 billion in the climate transition envelope to decarbonizing the real economy. CDPQ will also complete its exit from oil production by the end of 2022. It will dispose of its remaining assets in the sector, which make up 1% of its portfolio, and therefore avoid contributing to the growth of the world’s oil supply.

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