CDPQ Releases 2024 Sustainable Investing Report
CDPQ has unveiled its Sustainable Investing Report for the fiscal year ending December 31, 2024. The document outlines the organization’s achievements, including surpassing its climate goals ahead of schedule, as part of its enhanced climate strategy established in 2021. Additionally, CDPQ has made strides in social and governance areas throughout the year. The report reaffirms that CDPQ’s commitment to sustainable investing is advantageous for its overall performance, allowing it to navigate increasing complexities and seize valuable opportunities for deploying its capital effectively in Québec and beyond.
Commitment to Sustainable Investing
“Sustainable investing is a fundamental aspect of our fiduciary responsibility. To secure optimal performance for our clients, aligning our investments with robust business models that provide value both now and in the future is essential. I commend our teams for their tremendous efforts in achieving our targets sooner than expected,” stated Charles Emond, President and CEO of CDPQ. He emphasized the need to maintain a balance between ambition and practicality, considering the current challenges companies face, while always keeping a long-term perspective to ensure assets are well-prepared for future demands. This strategy is critical for fulfilling the pension needs of over six million residents of Quebec.
Recognized Leadership in Sustainable Investing
“CDPQ’s role as a leader in sustainable investing is acknowledged both in Québec and internationally. This prominent position enables us to collaborate with innovative partners and access exceptional opportunities, which will support our success in the years ahead,” remarked Marc-André Blanchard, Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability. He reiterated that sustainable investing not only reflects their constructive capital philosophy but is also vital for portfolio resilience and achieving optimal long-term returns, viewing the transition through both risk management and investment opportunity lenses.
Achievements in Environmental Targets
CDPQ has successfully met its climate objectives through investments in low-carbon and low-footprint assets, the decarbonization of its portfolio companies, and maintaining active dialogue with these entities. The organization holds $58 billion in low-carbon assets, including $15.5 billion invested in Québec, marking a substantial increase of $40 billion in low-carbon assets since 2017 and surpassing its 2025 target of $54 billion. Notably, there has been a 69% reduction in the portfolio’s carbon intensity since 2017, exceeding the 60% reduction target set for 2030. Overall, $330 billion of CDPQ’s assets have a low-carbon footprint, accounting for nearly 80% of the total portfolio, alongside $6.2 billion allocated to transition assets aimed at decarbonizing high-emission sectors.
Social Initiatives and Inclusion
CDPQ prioritizes inclusivity and diverse perspectives to enhance decision-making and overall performance within its organization and among the boards of its portfolio companies and external managers. The organization adheres to fair tax principles and rigorously evaluates each investment opportunity. As part of its commitment to diversity, 47% of its workforce and 42% of its Board of Directors are women. Additionally, 27% of employees in Canada identify as part of visible minorities, ethnic minorities, or Indigenous communities. Furthermore, 73% of actively managed public companies in its portfolio have at least 30% female representation on their boards, reflecting a 78% increase over four years. CDPQ has also issued 310 pre-investment assessments concerning tax practices.
Governance Practices at CDPQ
CDPQ places a strong emphasis on governance within its investment practices. The organization continuously strives to enhance its governance framework while actively assisting its portfolio companies and external managers in their governance improvements. In 2024, this support was demonstrated through various initiatives: 12 Québec companies received help in implementing sustainable business practices, CDPQ engaged in dialogue with 537 portfolio companies where it holds shares, and it exercised its voting rights on 34,857 resolutions at 3,326 shareholder meetings to advocate for sustainability. Support for shareholder proposals related to environmental issues reached 47%.
About CDPQ
CDPQ focuses on constructive investments aimed at generating sustainable long-term returns. As a global investment group managing assets for public pension and insurance plans, CDPQ collaborates with partners to develop enterprises that deliver performance and advancement. Active across major financial markets, private equity, infrastructure, real estate, and private debt, CDPQ reported net assets amounting to CAD 473 billion as of December 31, 2024. For more information about CDPQ, interested parties can visit their website or follow them on social media platforms. CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec, with licensing for use by its subsidiaries.
