The human, environmental and economic impacts of climate change are daily reminders of how we need to act urgently and invest to support the transition toward a low-carbon economy.
Our investment strategy to address climate change
Our strategy reflects our willingness to be a leader among major global institutional investors in reducing GHG emissions.
Adopted in 2017 and the results of a thorough process, the strategy is based on:
- Scientific observations
- The positions of the financial community that we belong to
- An extensive analysis of our peers’ best practices
- Our discussions with stakeholders
Exceeding our targets
In 2020, we exceeded the targets we set in 2017. We now rank among the largest renewable energy investors in the world and we intend to continue down this path.
We work to raise our expectations in order to:
- Focus more on assets that support the transition
- Increase our efforts to reduce carbon intensity across the total portfolio
- Decrease our exposure to polluting fossil fuels
We intend to continue contributing to the decarbonization of the real economy and achieve a carbon-neutral portfolio by 2050.
Our strategy’s four pillars
1. Factoring in climate change in every investment decision
We factor the climate into all our investment processes, affording it the same treatment as financial risk.
Developing specialized tools
We take various approaches to integrating climate factors into our investment process, including:
- Carbon budgets for each portfolio to foster low-carbon investments and those that are better positioned in terms of energy
- Variable employee compensation linked to the achievement of our climate targets
- Physical risk analyses to obtain a qualitative and quantitative assessment of events that could have a high impact on our assets
- Scalable tools that improve the integration of transition-related risks and guide the decision-making process
2. Increasing our low-carbon investments by 80% between 2017 and 2020
At the end of 2020, our low-carbon asset portfolio totalled $36 billion, or double the value of investments compared to 2017.
Since we launched our strategy, our portfolio has expanded through the addition of numerous low-carbon investments and reinvestments around the world.
Having exceeded our 2020 target, we will set a new target for low-carbon investments.
(in billions of dollars)
3. Reducing our carbon intensity by 25% per dollar invested between 2017 and 2025
Since 2017, our portfolio’s carbon intensity has fallen 38%, exceeding the target of a 25% reduction by 2025.
We significantly lowered our total portfolio’s carbon intensity since 2017 by:
- Rigorously using carbon budgets
- Making low-carbon acquisitions
- Disposing of higher carbon-intensity assets
Having exceeded our reduction target, we will set a new target for 2025. Our ambition: a carbon-neutral portfolio by 2050.
PORTFOLIO CARBON INTENSITY
(in tCO2 e/M$)
4. Exercising stronger climate leadership in the industry and among our portfolio companies
We believe that pandemic recovery measures are an opportunity to build more sustainable companies and communities.
In addition to achieving our own objectives, we are active in many local and international initiatives.
Our goal: mobilizing our portfolio companies and all stakeholders in the investing and finance industry in the fight against climate change.
Joining structuring initiatives
We take part in numerous international initiatives to share climate-related experiences and best practices and support multiple associations and groups, including: