Six of the leading Canadian pension asset managers are sharing details of their energy transition strategies in a new report by the Investor Leadership Network.
The report, which highlights the complexity of climate transition investing, received contributions from the Alberta Investment Management Corp., the Caisse de dépôt et placement du Québec, the Canada Pension Plan Investment Board, the Ontario Municipal Employees’ Retirement System, the Ontario Teachers’ Pension Plan and the Public Sector Investment Board.
The report seeks to provide an overview of the wide range of transition frameworks, methodologies and tools that institutional investors are using. The resources and methodologies are categorized into four themes: emissions forecasting and target setting, investment risk parameters, transition taxonomies and transition capacity metrics.
According to a press release, Maria Montero, co-lead of ILN’s climate change committee and principal of the sustainable investment group at the CPPIB, said the report’s practical case studies provide investors with a helpful overview of the approaches taken by Canada’s largest long-term investors.
“Investors can play an active role in financing real economy emissions reductions and as a result reduce financed emissions.”