Quebec pension giant Caisse will sell off all remaining oil assets by next year as part of their ongoing effort to cut their carbon footprint in half by 2030.
Overall, Cassie holds about $390 billion in assets. One percent is currently tied up in oil-related investments.
“The climate situation affects everyone, and we can no longer address it with the same methods used a few years ago,” CEO Charles Emond said. “We have to make important decisions on issues such as oil production and decarbonizing sectors that are essential to our economies.”
A shift is happening within the investment community and with other pension funds, such as the Ontario Teachers’ Pension Plan, which has also gone green. ‘Code Red’ warnings and increasing temperatures could be the reason behind these changes. Investors can no longer sit idly by and ignore the environmental impacts of their investments.
In addition to selling remaining oil assets, Caisse will purchase $54 billion in green assets by 2050. They have also set aside $10 billion to invest in carbon-intensive companies transitioning into more sustainable energy (such as metals, plastics, transportation, and agriculture).
“With this new strategy, we are demonstrating our leadership as an investor and entering the next stage of climate investing. We believe this is in the interests of our depositors, our portfolio companies, and the communities we invest in,” Emond said.
Many companies are choosing to invest in carbon offsets. A new report from Ecosystem Marketplace shows that the carbon markets are booming and on track to reach $1B before the end of 2021. It is important to note that the global carbon market is expected to reach $22 trillion by 2050.
As investments begin to focus on green initiatives, the world’s net-zero goals seem more within reach.