PR95590

MONTREAL, April 22, 2022 /PRNewswire=KYODO JBN/ --

-- Highlights:

    -- PSP Investments launches inaugural Climate Strategy with enhanced

       ambition to guide emissions reduction across its investment portfolio

       and to contribute toward global net-zero emissions.

    -- Commitments include using capital and influence to support the

       transition to global net-zero emissions by 2050.

    -- PSP Investments anticipates reducing portfolio GHG emissions intensity

       by 20-25% by 2026 (relative to a September 2021 baseline).

    -- PSP Investments also releases its bespoke Green Asset Taxonomy, a

       classification system that assesses the firm's exposure to climate

       relevant investments across its portfolio and helps measure and manage

       its exposure to green assets, transition assets and carbon-intensive

       assets over time.

    -- Short-term targets published today and to be met by 2026 include

       commitments that aim to:

         -- Increase investments in Green Assets to C$70.0 billion

         -- Increase investments in Transition Assets to C$7.5 billion

         -- Reduce holdings of Carbon Intensive Assets that lack transition

            plans by 50%

         -- Ensure that assets representing 50% of PSP's carbon footprint have

            commitments to implement mature transition plans

         -- Steer at least 10% of PSP's long-term debt financing toward

            sustainable bonds

         -- Undertake efforts to obtain GHG data for 80% of the in-scope

            portfolio of PSP's carbon footprint

The Public Sector Pension Investment Board (PSP Investments) announced today

the launch of its first Climate Strategy, setting out an enhanced ambition to

guide emissions reduction across its investment portfolio. The objective of the

Climate Strategy is to support the global transition to net-zero emissions by

2050 by proactively managing climate risks, unlocking investment and carbon

reduction opportunities associated with climate-aligned assets, strengthening

carbon disclosure, and enhancing collaboration with a wide range of

stakeholders.

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"At PSP Investments, we have considered ESG factors, including climate, in our

decision-making for many years.  This puts us in a good position to launch our

climate strategy today", said Neil Cunningham, President and CEO at PSP

Investments. "PSP Investments is committed to using its capital and influence

to support the transition to global net-zero emissions by 2050. We understand

the important role that the financial sector can play in addressing climate

change whether it be our investment choices, providing capital to support the

transition to global net-zero or encouraging the reduction of GHG emissions

among the companies in which we invest."

The focus areas, as laid out in the PSP Climate Strategy Roadmap, include

increasing investments in assets that support climate mitigation and

adaptation, and reducing our exposure to carbon-intensive investments that

don't have transition plans. PSP Investments also commits to engage with

portfolio companies to encourage carbon footprint reductions, the adoption of

science-based transition plans and the uptake of disclosure practices aligned

with the Task Force on Climate-Related Financial Disclosures (TCFD).

As part of its new Climate Strategy, PSP Investments has also released its

bespoke Green Asset Taxonomy which it uses to quantify GHG emissions exposure

across its investment portfolio to set a baseline and to monitor the progress

of emissions reduction over time.  

PSP Investments will aim to:

    -- Increase investments in Green Assets to C$70 billion by 2026 from a

       C$40.3 billion baseline in 2021.

    -- Increase investments in Transition Assets to C$7.5 billion by 2026 from

       a  C$5.1 billion baseline in 2021 and ensure that assets representing

       50% of PSP Investments' carbon footprint will have commitments to

       implement mature, science-based transition plans by 2026.

    -- Reduce holdings in Carbon Intensive Assets that lack transition plans by

       50% by 2026 from a $7.8 billion baseline in 2021.

    -- Promote the adoption of science-based transition plans.

    -- Enhance GHG data coverage across the portfolio by aiming to obtain GHG

       data for 80% of its in-scope portfolio by 2026.

PSP Investments will have an equally important role to play in growing the

market for sustainable finance. Following its inaugural C$1.0 billion Green

Bond Issuance in February 2022, PSP Investments will aim to steer at least 10%

of its long-term debt financing toward sustainable bonds by 2026.

"The most recent research on climate change is clear and we must all step up to

increase our ambition", continued Neil Cunningham, President and CEO at PSP

Investments. "We embrace the need to take action on climate risk while also

positioning our portfolio to deliver the investment results required by our

mandate. Research shows that corporations that are actively managed and plan

for climate change can secure a higher return on investment as compared with

companies that do not. By executing its climate strategy, I believe that PSP

Investments can support the transition to global net-zero emissions by

investing for a better tomorrow."

For more information about the "PSP Climate Strategy Roadmap", click here (

https://c212.net/c/link/?t=0&l=en&o=3512120-1&h=2234366950&u=https%3A%2F%2Fwww.investpsp.com%2Fmedia%2Ffiler_public%2F02-we-are-psp%2F02-investing-responsibly%2Fclimate-strategy-2022%2FClimate-Strategy-Roadmap.pdf&a=here

or visit www.investpsp.com/en/psp/investing-responsibly/

About PSP Investments

The Public Sector Pension Investment Board (PSP Investments) is one of Canada's

largest pension investment managers with C$204.5 billion of net assets under

management as of March 31, 2021. It manages a diversified global portfolio

composed of investments in public financial markets, private equity, real

estate, infrastructure, natural resources and credit investments. Established

in 1999, PSP Investments manages and invests amounts transferred to it by the

Government of Canada for the pension plans of the federal Public Service, the

Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.

Headquartered in Ottawa, PSP Investments has its principal business office in

Montréal and offices in New York, London and Hong Kong. For more information,

visit investpsp.com or follow us on Twitter and LinkedIn.

Media Contact: Maria Constantinescu, PSP Investments, (514) 218-3795 | 1 844

525 3795, media@investpsp.ca

SOURCE  PSP Investments