CPPIB commits to net-zero portfolio by 2050, reports net assets of $550.4 billion

TORONTO — The fund manager for the Canada Pension Plan has committed to make its portfolio net zero by 2050 as it reports that its net assets grew 1.6 per cent in its third quarter.

CPP Investments says it plans to achieve the goal while continuing to invest in the whole economy, rather than through a blanket divestment from fossil fuel companies as some have called for.

It says it will push for an economic transition to a lower carbon economy as an active investor, and will look for attractive returns from enabling emissions reductions in high-emitting sectors. 

CPPIB says it has also committed to increasing its investments in green and transition assets from $67 billion to at least $130 billion by 2030, and aims to be carbon neutral in its operations by the end of fiscal 2023.

It says it ended the Dec. 31 quarter with net assets of $550.4 billion, up from $541.5 billion at the end of the last quarter.

CPP Investments says the $8.9-billion increase in net assets includes $13 billion in net income and $4.1 billion in net Canada Pension Plan outflows. 

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This report by The Canadian Press was first published Feb. 10, 2022.

The Canadian Press