Acknowledging that the multi-faceted causes and consequences of climate change call for different methods, Quebec-based pension fund Bâtirente is publishing a new climate commitment.

“Effectively supporting the transition to an economy that is aligned with the objectives of the Paris [Agreement] requires a multi-dimensional approach,” said Daniel Simard, the pension fund’s chief executive officer, in a press release. “It is essential to simultaneously reduce greenhouse gas emissions and facilitate the financing of solutions and resilience, while convincing companies to make the commitment to increase their energy efficiency, to migrate to renewable energies and even to transform their business models.”

Read: How Bâtirente takes ESG reporting to the next level

By 2025, Bâtirente will:

  • Gradually reduce its exposure to climate risk by 50 per cent through the reduction of its investment in GHG-emitting companies, thus reducing the carbon footprint of its portfolios.
  • Invest in the economy’s transition by doubling its capital allocation in impact investments — currently, 13 per cent of its assets under management — in order to actively contribute to environmental solutions, including those that promote a just energy transition, clean energy, innovation and job creation in these future sectors and to participate in the financing of climate-resilient infrastructure.
  • Direct its shareholder commitment to improve the climate protection performance of companies by encouraging decisions aimed at meeting the current and future commitments of governments with respect to the climate and environmental crisis and to set a path for their business strategies toward sustainable development.
  • Collaborate with partners committed to mobilizing all sectors of society in the transition to a low-carbon economy.
  • Report regularly on its progress and achievements toward each of these objectives.

Read: Bâtirente raises assets in energy transition with $15M investment in green bond fund

“It is important for Bâtirente to fulfil its fiduciary responsibility by taking the necessary steps to allocate the capital entrusted to us in the best possible way,” said Pierre Patry, treasurer of the Confédération des syndicats nationaux and chairman of the board of directors at Bâtirente, in the release. “Our commitment aims at mitigating both the cause of global warming by reducing greenhouse gas emissions and the consequences of this climate change by building resilience.”

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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