CDPQ has published its 2024 Sustainable Investing Report, detailing its progress in implementing sustainable investment practices.
The report highlights the organization’s achievement of surpassing its climate targets ahead of schedule, as part of its updated climate strategy introduced in 2021. In addition to environmental progress, CDPQ has made significant advances in social and governance areas.
CDPQ said it has made progress in its investments within the insurance industry by focusing on companies that demonstrate strong ESG practices.
The organization’s strategy involves prioritizing investments in companies that are actively addressing climate-related risks, with a particular focus on ensuring that the insurance industry adopts practices that support the transition to a low-carbon economy.
This includes investing in insurers that are advancing their sustainability initiatives, particularly those working to reduce their carbon footprint and integrate environmental considerations into their underwriting processes.
In its climate strategy, CDPQ has exceeded its goal of $54 billion in low-carbon assets by 2025, achieving $58 billion, including $15.5 billion in Québec.
The organization’s focus on sustainability in its investments is especially relevant to the insurance sector, where the rising risks from climate change and other environmental factors can directly affect both the financial stability and risk management strategies of insurers.
"Sustainable investing is a critical component of our fiduciary duty," said Charles Emond, president and CEO of CDPQ. "To deliver optimal returns for our depositors, we must invest in businesses, including those in the insurance sector, that create value not only today but in the long term. Our success in surpassing our climate targets earlier than expected reflects our commitment to this strategy."
On the social and governance engagement front, the organization said it has worked to promote diversity within its ranks, with women representing 47% of its workforce and 42% of its board. These efforts extend to its portfolio companies, including insurers, with CDPQ encouraging better diversity practices on boards and within management teams.
The organization also actively engages with insurance companies in its portfolio to improve governance practices, using its influence to support the adoption of sustainable and transparent business practices.
As the insurance industry faces growing risks from climate change, CDPQ said its strategy will help insurers manage these challenges while positioning them for long-term success in a rapidly changing environment.
By prioritizing investments that promote sustainability, the organization said it continues to build a resilient portfolio that supports both financial returns and the long-term stability of the sectors it invests in, including insurance.
