Sustainable Investing

Sustainable Investing

Driven to create long-term value

Detailed reports of our achievements & performance

2025 Annual Report
Date: March 31, 2025
Size: 9.7 MB
2024 Sustainability Report
Date: Sept. 11, 2024
Size: 1.1 MB
2024 Climate-related financial disclosures
Date: Sept. 11, 2024
Size: 482.7 KB

Looking beyond the numbers

Environment

Assessing risks and opportunities such as climate change, water usage and waste

Social

Prioritizing worker, community and societal health and well-being

Governance

Encouraging high performing boards of directors and good governance practices

A roadmap to guide our climate action

PSP Investments believes that climate change is one of the most critical social, economic and environmental challenges of our time.

 

We acknowledge that climate change will have significant physical and economic impacts on the economy, communities and the environment. We are committed to using our capital and influence to drive Paris-aligned decarbonization outcomes across our investment portfolio.

 

As an institutional investor, we adopt a long-term world view and are seized with the potential for the financial sector to support the transition to global net-zero emissions. PSP Investments' actions are guided by our bespoke Green Asset Taxonomy and our Climate Strategy Roadmap that outlines five focus areas:

Climate Integration

Climate Investing & Sustainable Finance

Engagement & Proxy Voting

Reporting & Disclosure

Leadership & Collaboration

Our Green Asset Taxonomy

We recently developed and operationalized a bespoke Green Asset Taxonomy which we used to quantify our GHG emissions exposure across our portfolio.* The Taxonomy allows us to track GHG changes at the asset level over time, monitor progress against our targets and inform our investment decision-making and approach to engagement.

 

A bespoke classification system that considers GHG performance to assess PSP Investments' baseline exposure across three types of climate-relevant investments:

Green Assets

Investments in low-carbon activities that are contributing to climate mitigation and adaptation

Transition Assets

Investments that are committed to contributing to the low-carbon transition through targets and plans

Carbon Intensive

Investments in high-carbon sectors that lack transition plans or fail to show low-emission performance

*In scope: Long-Only Public Equities (Active and Passive); Real Assets (Direct and Indirect); Private Equity (Direct and Indirect). Out of scope: ETFs, Complementary Portfolio, Credit Investment, Fixed Income, Funds of Funds.

Investing for a better tomorrow

Our Climate Strategy Roadmap is a call to action to our investment teams and business groups, portfolio companies, partners and stakeholders to work together in achieving our commitments and target.

Green Asset Taxonomy (white paper)
Date: Nov. 10, 2022
Size: 6.4 MB
Investment Beliefs
Date: April 21, 2022
Size: 32.4 KB

Translating our beliefs into action

We believe that well-run companies that effectively manage social and environmental issues are more likely to prosper over time. That is why, as a long-term investor, we integrate environmental, social and governance (ESG) considerations into our investment analysis and decision-making, and support sustainable business practices among the companies we invest in.

 

One of our roles as an investor is being an active steward of the assets we own, recognizing that stewardship is a shared responsibility. For PSP, sustainable investing means being committed to principles and collaborating with others to support robust and vibrant financial markets.

Sustainable Investment Policy

PSP is a member of the Canadian Coalition for Good Governance (CCGG) and supports the CCGG Stewardship Principles.  The Principles offer a framework of key stewardship responsibilities and were designed to help articulate investors’ fiduciary role. Although the Principles were designed with a view towards application in Canada, they are consistent with international developments in stewardship guidance to complement, rather than supersede or conflict with, the stewardship principles or codes of other countries and organizations.

External research reports

How public pension and sovereign wealth funds mainstream sustainability

 

United Nations Conference on Trade and Development

 

Date: September 18, 2020

VIEW REPORT

Climate Change Mitigation and Your Portfolio: Practical tools for investors

 

Investor Leadership Network


Date: September 15, 2020

VIEW REPORT

Integrating ESG in private investments

We conduct an in-depth ESG risk and opportunity analysis during the due diligence process for our private investments in Real Estate, Infrastructure, Natural Resources, Private Equity and Credit Investments. As owners, we closely monitor assets and engage directly with boards and management of our investee companies on material ESG risks and opportunities, with a view to protecting and enhancing long-term financial value.

Read more
Photo of a harbor at dusk

Integrating ESG in public investments

As part of our investment analysis and decision-making processes, we identify material ESG factors that may impact the long-term financial performance of our public market investments. We leverage our ownership positions to promote good governance practices, exercising our proxy voting rights and actively engaging with companies. We take a stand on issues that matter to capital markets more broadly by supporting best practices. A report of each year’s engagement activities is provided in our annual Responsible Investment Report.

Integrating ESG in our Green Bond Framework

Through the issuance of Green Bonds, PSP Investments aims to fund projects that demonstrate positive environmental and climate outcomes for the benefit of society. Net proceeds from this issuance will be allocated to assets that demonstrate strong ESG performance and support the transition to a more environmentally sustainable economy. We established five high-level pillars to guide the development of our Green Bond approach. They describe the real-world outcomes we seek to achieve through our Green Bond program.

Our Debt Programs

Standing by our beliefs

Proxy voting

We strive to vote at all shareholder meetings organized by companies in which we invest. Our Corporate Governance and Proxy Voting Principles serve as our guide and focus on nine themes.

 

Our proxy voting record

PSP publishes its voting records for shareholders' meetings on a website hosted by Institutional Shareholders Services (ISS).


Voting records can be searched by issuer name or by date starting from November 1, 2017.

Search voting records

Setting a high bar for external managers

We assess the ESG practices of fund managers to ensure that their approach is aligned with our Sustainable Investment Policy and expectations. Before allocating capital to any external managers for public market investments or committing to private investment funds, we use an in-house framework to objectively evaluate their ESG practices. By reporting back to them on our findings, we share our ESG vision and open the door to discussions about ESG best practices and how to adopt them.

Collaborating on issues that matter to capital markets

We work with a number of organizations to support initiatives that enhance the quality of ESG practices and disclosure.

Principles for Responsible Investment (PRI)

We are a signatory of the PRI, the world’s leading proponent of responsible investment, and a member of the PRI Québec Network. The PRI works to understand the investment implications of ESG factors and supports its international network of investors in incorporating these factors into their investment and ownership decisions.

30% Club Canada

The 30% Club Canada believes that gender balance on boards encourages better leadership and governance, and ultimately contributes to better board and corporate performance. We have joined with others to support the objective of 30% of board seats and senior management positions to be held by women.

Canadian Coalition for Good Governance (CCGG)

CCGG allows us to unite our voice with those of other institutional investors to promote good governance practices in Canadian companies, as well as the efficiency and effectiveness of Canadian capital markets.

CDP

We are a signatory to the CDP and the CDP Water Program. The CDP runs the global disclosure system that enables public companies to measure and manage their environmental impacts. We support their campaigns encouraging companies to disclose their climate-change and water-related risks and opportunities.

International Corporate Governance Network (ICGN)

ICGN is an investor-led organisation whose mission is to promote effective standards of corporate governance and investor stewardship to advance efficient markets and sustainable economies worldwide. As an ICGN member, we support its Global Governance Principles and Global Stewardship Principles.

Pension Investment Association of Canada (PIAC)

We are a member of PIAC, the national voice for Canadian private and public pension funds and a forum for sharing knowledge and best practices. As an active participant in PIAC’s Investor Stewardship Committee, we aim to develop, monitor and promote robust standards and best practices for pension investment stewardship in Canada.

Sustainable Stock Exchange (SSE) Initiative

We have joined the SSE Initiative, a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators and companies, can enhance corporate transparency and ultimately performance on ESG issues.

Finance Montréal

We have joined Finance Montréal’s Responsible Investment Work Group to identify strategic projects for the development of responsible investment practices in the financial community.

Council of Institutional Investors (CII)

CII is a leading voice for effective corporate governance, strong shareowner rights and vibrant, transparent and fair capital markets. CII promotes policies that enhance long-term value for US institutional asset owners and their beneficiaries. We are an active member of CII’s Corporate Governance Advisory Council.