Caisse to sell off remaining oil assets by next year

Caisse de dépôt et placement du Québec says it’ll divest all of its oil investments by subsequent 12 months as a part of the pension plan’s plan to assist fight local weather change by slicing its carbon footprint in half by 2030.

The province’s public pension fund unveiled its local weather change technique on Tuesday.

A core plank of the coverage is to divest all belongings that produce crude oil merchandise by the tip of 2022. 

“The climate situation affects everyone, and we can no longer address it with the same methods used a few years ago,” CEO Charles Emond stated. “We have to make important decisions on issues such as oil production and decarbonizing sectors that are essential to our economies.”

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The pension plan has been promoting off belongings within the oil sector, however the declaration means it’ll transfer forward with promoting off what it has left.

In accordance with regulatory filings, as of the tip of June 2021, the fund owned sizeable stakes in a variety of oil firms together with:

  • $661 million in French oil big Complete
  • $397 million value of oilsands firm Canadian Pure Assets
  • $359 million in Calgary-based Suncor
  • $110 million in Russia’s Lukoil
  • $65 million in BP
  • $61 million in Shell.

The corporate owns smaller stakes in different public oil firms, together with doubtlessly a number of extra personal investments, and enormous stakes in oil-related firms reminiscent of pipelines and pure gasoline.

General, the Caisse has about $390 billion value of belongings, and about one per cent of them — just below $4 billion — are tied up in oil investments.

Public pension funds such because the Caisse have come below growing strain in recent times to make use of their sizeable monetary may to attempt to affect local weather coverage by investing in firms dedicated to sustainability.

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CBC Information reported on one activist group’s marketing campaign to boost consciousness concerning the fossil gas investments of main Canadian pension plans earlier this summer time.

Canadian credit standing company DBRS Morningstar stated pension funds are poised “to play a key role in fostering the advance of [sustainability] matters for the broader interests of society; however, their role will be guided by their fiduciary duty to their members and clients.”

Not simply oil divestment

The fund additionally says it’ll transfer its oil cash to different investments, with a view to purchasing up $54 billion in “green assets” by 2025.

And it has put aside a $10 billion “transition envelope” to spend money on carbon-intensive firms exterior the power sector which are attempting to go extra sustainable. These industries embrace makers of uncooked supplies reminiscent of metallic and plastics, transportation firms upgrading their fleets to make use of inexperienced autos and various fuels, and agriculture firms reminiscent of fertilizer producers.

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“With this new strategy, we are demonstrating our leadership as an investor and entering the next stage of climate investing. We believe this is in the interests of our depositors, our portfolio companies and the communities we invest in,” Emond stated.

General, the pension fund says it plans to scale back its whole carbon footprint by 60 per cent by 2030.

The pension fund first introduced local weather targets in 2017, and Tuesday’s report reveals that it’s forward of that schedule, and advancing its targets even additional. The inexperienced funding goal is thrice what the fund owned in 2017, for instance.

“In practical terms, we want to increase the supply of renewable energy as well as sustainable mobility and real estate, to contribute directly to the decarbonization of our economy,” Emond stated.