A group of large institutional investors have signed on to the Montreal Carbon Pledge, agreeing to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis.
Overseen by the UN-backed Principles for Responsible Investment, the pledge
hopes to attract $3 trillion of portfolio in time for next year’s UN climate
change conference.
"We are proud to launch the Montreal Carbon Pledge, a commitment by
investors to translate climate talk into walk," said Fiona Reynolds, Managing
Director of the Principles for Responsible Investment. "The first step to
managing the long-term investment risks associated with climate change and
carbon regulation is to measure them, and this initiative sets a clear path
forward."
Carbon footprinting enables investors to quantify the carbon content of a
portfolio, the PRI said, noting that 78% of the largest 500 publicly listed
companies now report their carbon emissions.
Eight funds are inaugural participants in the Montreal pledge, including the $298 billion
California Public Employees’ Retirement System and France’s public sector
pension plan known as ERAFP. The only Canadian fund to commit so far is
Montreal-based Bâtirente, which manages $1.2 billion in assets.
Batirente chief executive officer Daniel Simard said the pledge is the next
step in the fund’s commitment to socially responsible investing.
“We think we must move to a new stage in responsible investment, and that is
about capital allocation,” he said in an interview with the Globe & Mail.
“For us, measuring our footprint means considering reducing our carbon
footprint. So we will need to see how we can rethink our asset management in
these terms.”
Toby Heaps of Corporate Knights told the Globe a number of Canadian
investors have been reviewing the pledge and may sign on, including the Canada
Pension Plan Investment Board, which said it is assessing the new initiative.
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