Most current initiatives to tackle the climate crisis do not address strategic sectors that are both essential and high emitting.
These strategic sectors include agriculture, chemicals, cement, conventional power, oil and gas, steel and heavy transportation.
The successful decarbonization of these strategic sectors is not only essential to meet wider net-zero ambitions, but also to sustain economic growth, stability and a responsible transition.
CPP Investments sees an opportunity to create value and pursue new investments by applying a decarbonization investment approach, which seeks attractive returns by enabling an economy-wide evolution to a low-carbon future. This investment approach is premised on identifying, funding and supporting high-emitting companies that are committed to lowering their emissions in a way that will allow CPP Investments to capture attractive risk-adjusted returns. We believe that high-emitting companies that navigate this evolution successfully will preserve and surface embedded value for patient investors.
The climate challenge will require unprecedented collaboration and capital. We welcome dialogue and opportunities for partnership with like-minded companies, industry leaders, investors, and other interested parties as we build a dedicated investment approach to support current and future portfolio companies in their transition.