Investment corporation, La Caisse, aims for a $400 billion commitment towards climate-related projects by the year 2030.
The Caisse de dépôt et placement du Québec (La Caisse), a prominent Canadian institutional investor, has announced a new target of $400 billion in climate action investments by 2030 as part of its 2025-2030 climate strategy [1][2][5]. This ambitious goal is aimed at accelerating the decarbonization of La Caisse's portfolio and the economy at large.
La Caisse's strategy is underpinned by its Transition Financing Framework, which aligns with global standards and has been validated by the Climate Bonds Initiative. The focus is on backing companies that integrate climate considerations into their business models and on transitioning the real economy across all sectors [1][2].
Charles Emond, President and CEO of La Caisse, has reaffirmed their sustainable investing convictions as a part of their fiduciary responsibility. In contrast to some of its Canadian financial sector peers, La Caisse has not pulled back on its climate goals. For instance, the Canada Pension Plan Investment Board (CPPIB) dropped its net zero by 2050 target, and RBC withdrew its goal to mobilize $500 billion in sustainable finance by 2025 [1].
La Caisse's focus areas for investments include companies committed to decarbonizing their activities and investments in climate solutions, defined as assets that facilitate the broader economy's decarbonization. These include low-carbon technologies, infrastructure projects supporting the energy transition, and other products and services that enable carbon reduction [1].
Remarkably, La Caisse's portfolio has decarbonized much faster than expected. Since 2017, the carbon intensity of La Caisse’s portfolio has decreased by about 69%, surpassing the initial target of a 60% reduction by 2030 [2]. The institutional investor also plans to scale investments in climate solutions contributing to the decarbonization of the real economy.
La Caisse's long-term goal is to achieve a carbon-neutral portfolio by 2050 [1][2]. In the short term, the goal is to reach a 60% decrease in portfolio carbon intensity by 2030, a target that has already been surpassed. La Caisse's previous climate goals, set in 2021, included reaching $54 billion investments in low-carbon assets and $10 billion in industrial decarbonization investments by 2025 [2].
In essence, La Caisse aims to deploy $400 billion by 2030 in a combination of investments in companies transforming their operations toward sustainability and direct investments in climate-enabling assets and infrastructure, leveraging its accelerated decarbonization achievements to lead a significant global energy transition [1][2][5].
[1] Caisse de dépôt et placement du Québec. (2022). La Caisse unveils its 2025-2030 climate strategy. Retrieved from https://www.cdpq.com/en/newsroom/press-releases/la-caisse-unveils-its-2025-2030-climate-strategy
[2] Caisse de dépôt et placement du Québec. (2021). La Caisse sets new climate goals to accelerate the energy transition. Retrieved from https://www.cdpq.com/en/newsroom/press-releases/la-caisse-sets-new-climate-goals-to-accelerate-the-energy-transition
[5] Caisse de dépôt et placement du Québec. (2022). La Caisse surpasses its climate targets. Retrieved from https://www.cdpq.com/en/newsroom/press-releases/la-caisse-surpasses-its-climate-targets
- The Caisse de dépôt et placement du Québec (La Caisse) aims to deploy $400 billion by 2030 in a combination of investments in companies transforming their operations toward sustainability and direct investments in climate-enabling assets and infrastructure.
- La Caisse's strategy is underpinned by its Transition Financing Framework, which aligns with global standards and has been validated by the Climate Bonds Initiative, focusing on backing companies that integrate climate considerations into their business models.
- La Caisse's focus areas for investments include companies committed to decarbonizing their activities and investments in climate solutions, such as low-carbon technologies, infrastructure projects supporting the energy transition, and other products and services that enable carbon reduction.
- Remarkably, La Caisse's portfolio has decarbonized much faster than expected, with a decrease in carbon intensity by about 69% since 2017, surpassing the initial target of a 60% reduction by 2030.
- In the short term, La Caisse's goal is to reach a 60% decrease in portfolio carbon intensity by 2030, a target that has already been surpassed, while the long-term goal is to achieve a carbon-neutral portfolio by 2050.
