Caisse de Depot et Placement du Quebec, Montreal, announced on Wednesday it will cut the carbon footprint of its C$286.5 billion ($230 billion) investment portfolio by 25% by 2025 and increase its low-carbon investments by 50%, or C$8 billion, by 2020.
Caisse, which manages Quebec public pension plan and other assets, is making the moves as part of a new overall investment strategy to address climate change that will factored into all its asset classes, according to a Caisse report.
"Climate therefore becomes fully factored into our investment process in the same way risk is," the report said.
As part of the new strategy, Caisse will increase its low-carbon investments in areas including clean and renewable energy, such as solar and wind power, clean infrastructure such as public transportation, energy-efficient buildings and battery technology, according to the report.
Along with those investments, Caisse will cut investments in some energy categories such as coal as well as industrial materials.
"Our strategy is based on a fundamental commitment," Michael Sabia, Caisse president and CEO, said in an accompanying release. "From now on, climate change will factor in each and every investment decision we make across the breadth of our portfolio. In building this strategy, we have undertaken a thorough analysis of markets and institutional investors' best practices."
The full report is on Caisse's website.