In brief: CDPQ nears 2030 carbon intensity target ahead of schedule

Caisse de dépôt et placement du Québec is near to achieving one of its 2030 decarbonisation targets, seven years ahead of schedule.

CDPQ has reduced the carbon intensity of its C$434.2 billion ($317.4 billion; €295.3 billion) portfolio by 59 percent against a 2017 baseline, the pension giant’s 2023 sustainable investing report states. Carbon intensity measures emissions per dollar invested; CDPQ’s 2030 target is to clock a 60 percent carbon intensity reduction, from 79.4 tons of carbon dioxide-equivalent units per $1 million to 32 tons. CDPQ’s portfolio carbon intensity was 32.2 tons at the end of 2023 – a 59 percent reduction against the 2017 baseline.

The investment teams of each asset class at CDPQ have an annual carbon budget, according to the report. “The change in our portfolio’s carbon intensity will not necessarily be linear over the next few years. It could be influenced by various factors, including asset values and investment opportunities in transition sectors.”

CDPQ has approximately 46 percent of its portfolio invested in private funds and assets, New Private Market‘s database shows. It has established a C$10 billion allocation for transitioning assets and a target to hold C$54 billion in “low carbon” or “green assets” by 2025.