Quebec-based pension fund Bâtirente has reduced the carbon footprint of its equities by more than 22 per cent of its benchmark portfolios, according to the fund’s latest analysis.
It also found that as of Dec. 31, 2019, the fund’s carbon footprint was down 12 per cent from the previous year, due to improved equity selections in listed real estate, the Canadian materials sector and global utilities.
“For six years now, we’ve been measuring the carbon footprint of our portfolios with the firm conviction that the financial interest of our members converges with the common good,” said Daniel Simard, chief executive officer at Bâtirente, in a press release.
The pension fund is one of the first signatories of the Montréal Carbon Pledge and earlier this year, it unveiled a new climate commitment with a series of goals that will be completed by 2025. These include a 50 per cent cut to climate risk exposure through reduced investments in greenhouse gas-emitting companies and a doubling of capital allocation in impact investments and environmental solutions.
“It’s essential for Bâtirente to fulfil its fiduciary responsibility by taking the measures to optimally allocate the capital entrusted to us,” said Pierre Patry, treasurer of the Confédération des syndicats nationaux and chairman of the board of Bâtirente, in the release. “Our commitment aims to mitigate the direct cause of global warming through the reduction of greenhouse gas emissions as well as to mitigate the consequences of global warming by building resilience.”