Sustainability has been at the heart of Caisse de dépôt et placement du Québec (CDPQ)’s priorities since the 2000s. The Canadian institutional investor’s approach to sustainable investing is based on integrating ESG factors in all its investment decisions, regardless of asset class. This enables it to pursue a strategy based on risk management, value creation and innovation. Moreover, it ensures that it can target issues on which it has the most impact and that allow it to generate positive impact and sustainable benefits, such as, but not limited to, climate change, diversity, equity and inclusion, taxation, and governance.

CDPQ is also guided by its own climate strategy. Since this was launched, it has reduced its carbon footprint by 59% and it now holds CAD53bn (€35bn) in low-carbon assets and CAD330bn in assets with a low-carbon footprint. To put this in context, nearly 80% of its portfolio now comprises low-carbon assets or assets in low-intensity sectors.

CDPQ applies its ESG and net-zero policies not only to its own portfolios and operations but also uses its role as an investor to contribute to the carbon reduction policies of those entities it invests in.

To this end, it created a CAD10bn envelope to support initiatives to decarbonise the sectors that emit the most. This envelope will thus reduce the amount of greenhouse gas emissions in the real economy by targeting sectors that are essential to the transition.

The deployment of CDPQ’s capital is conditional on the level of transformation that its investee companies undertake as they transition from high carbon intensive energy consumption to more sustainable solutions based on renewable energy, among others. This support has led to many companies making their mark as being among the first in their regions and sectors to develop ambitious decarbonisation plans that are SBTI-certified (Science Based Target Initiative).

STRATEGIC TAKEAWAYS

For APG the impact and sustainability of investments are as significant as financial returns. It integrates measurable ESG criteria into its acquisition, due diligence and value enhancement processes, avoiding assets that fail to meet its sustainability standards. In recent years, APG has accelerated the energy transition as a core component of its investment strategy, including significant investments in renewable energy projects and innovative technologies that promote sustainability. Moreover, it has established itself as a leader in stewardship within private markets.

Sustainability plays a crucial role in all MAPFRE’s investments, not least infrastructure. In relation to investment processes, it has adhered since 2017 to the investment principles of the United Nations Principles for Responsible Investment (PRI) initiative. Additionally, as part of its commitment to be a net zero company in 2050, MAPFRE adheres to the UN’s Net Zero Asset Owner Alliance that helps it define intermediate objectives to align its portfolios with the 1.5⁰C climate scenario. Exclusions include companies operating in the coal, gas and oil sectors that do not meet the same objective.