TORONTO, Aug. 14, 2026 /CNW/ — Canada Pension Plan Investment Board (CPP Investments) today announced additional portfolio-level disclosure related to its carbon footprint, introducing a snapshot of carbon intensity and transition governance indicators across the Fund’s holdings.
CPP Investments’ Climate Change Principles, including regular reporting on its portfolio emissions, help inform how the organization fulfills its mandate against the backdrop of increasing climate risk and opportunities as the world navigates a whole economy transition.
“Our investment strategy remains focused on delivering long-term value to help ensure the Canada Pension Plan’s financial sustainability for many generations. We consider material risks, including climate-related risks and opportunities, to support risk-adjusted returns over decades. We know that progress towards a lower-carbon future will not be linear, and we are committed to continued transparency as we invest across sectors and work with companies to reduce risk and preserve value,” said John Graham, President & CEO, CPP Investments.
Framework to Analyze CPP Investments’ global portfolio carbon footprint CPP Investments has reported portfolio carbon footprint metrics since 2018. This enhanced reporting provides a point-in-time view of the composition of that footprint by classifying individual portfolio holdings across two dimensions: Carbon Intensity and Transition Governance.
Carbon Intensity refers to a company’s Scope 1 and Scope 2 greenhouse gas emissions (GHG) relative to its total enterprise value by utilizing the Partnership for Carbon Accounting Financials metric of tonnes of carbon dioxide equivalent per $1 million of Enterprise Value Including Cash (tCO₂e/$M EVIC). Using information from the S&P Global LargeMid Cap reference portfolio, applying Global Industry Classification Standard (GICS) level 3 industry classification and then taking into account definitions of “hard to abate” and “high emitting” from the International Energy Agency and TPI respectively, we established a threshold of 40 tCO2e/$M EVIC to capture assets from harder to abate industries and those that have elevated carbon intensity relative to the rest of the portfolio. Companies at or below the threshold are not necessarily low-emitting or do not necessarily have low transition risk. Companies above the threshold are not necessarily high-emitting or necessarily have high transition risk.
Transition Governance refers to observable evidence that a company has taken steps to understand and prepare for transition-related risks and opportunities and there is evidence of a company’s alignment with at least one of three key indicators of transition-related governance or planning: either Science Based Targets initiative (SBTi) approved targets, Transition Pathway Initiative (TPI) Level 4 or 5 or participation in CPP Investments’ Decarbonization Investment Approach (DIA). Where the analysis has identified evidence of transition governance as above, companies are categorized as Confirmed. Holdings that do not meet these criteria or holdings that have not yet been assessed due to data limitations, lack of external coverage, or an inability to match a company to external datasets, or the company has not yet been assessed through DIA, are categorized as Unconfirmed.
Results of Framework Analysis The framework shows that for CPP Investments $787 billion investment portfolio at 31 March 2026 (excluding government issued securities) 86.7% of the portfolio was below the 40 tCO2e/EVIC threshold. Approximately 83.5% of the investments included as “evidence confirmed” were covered by third party transition governance indicators (SBTi and TPI) with the remainder covered by the DIA (16.5%).
The Notes provide additional information on the methodology, sources of information and results of the analysis.
Future Disclosure These metrics will be disclosed annually, in addition to the portfolio carbon footprint. Values will fluctuate over time depending on factors such as changes in portfolio companies’ management of climate-related risks, opportunities, market valuation movements affecting Enterprise Value including Cash (EVIC), data quality, and the Fund’s composition and growth. In addition, the Framework is a simplified indicator of climate-related characteristics of the portfolio at a point-in-time, not a specific assessment of whether companies are implementing their transition plans.
CPP Investments does not set fixed portfolio-level targets for these disclosed categories or for its portfolio carbon footprint more broadly. Maintaining flexibility allows CPP Investments to invest across sectors where it sees long-term value and support companies as they respond to the transition to a low-carbon economy.
“CPP Investments’ investment approach continues to be grounded in disciplined underwriting, active ownership and a belief that the transition to a lower-carbon economy will unfold unevenly across sectors and regions. Because companies will respond differently to these changes, this disclosure provides additional transparency into carbon intensity and transition governance indicators across our portfolio of assets while remaining consistent with our mandate and climate change principles,” said Richard Manley, Chief Sustainability Officer, CPP Investments.
Enhanced transparency, consistent investment discipline CPP Investments invests across the global economy, and climate-related risks and opportunities vary significantly by sector, geography and business model. Across the portfolio, CPP Investments assesses financially material climate-related risks and opportunities and incorporates them into investment decisions.
This additional disclosure does not alter CPP Investments’ investment strategy, underwriting approach, stewardship framework, or portfolio construction flexibility but aims to develop and disseminate accurate and accessible information.
CPP Investments uses its rights and influence as an owner to encourage stronger climate risk oversight and strategic transition planning where transition risk is material. In public markets, this may include engaging directly with boards of directors and exercising voting rights to promote effective governance of climate-related risks and opportunities. For example, during the 2026 proxy season, we voted against 950 directors on the boards of companies for failure to provide appropriate oversight of climate risk during the last proxy voting season.
In private assets, CPP Investments may work with general partners, boards and management teams, particularly where it has board representation or other governance rights, to support stronger risk assessment, transition-related planning and governance practices over time.
CPP Investments will continue to pursue its investment strategy and invest across sectors and assets that can generate long-term value, while enhancing transparency into how climate-related considerations are reflected across the portfolio.
About CPP Investments Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
SOURCE Canada Pension Plan Investment Board