ERM has entered into an agreement with Canada Pension Plan Investment Board (CPP Investments) to serve as a delivery partner for its recently announced decarbonization investment approach. This will identify attractive investment opportunities in companies that are committed to creating value by lowering their GHG emissions over time, consistent with CPP Investments’ time horizon advantage.
Through the new engagement, ERM will help CPP Investments identify existing CPP Investments portfolio companies that can generate value from decarbonization and will work with them to establish and implement a roadmap.
“Decarbonization of competitively advantaged companies in strategic sectors that are essential, but high-emitting presents a significant investment opportunity and is aligned with our strategy to anticipate and proactively manage ESG risks and opportunities, including climate change-related ones, to drive long-term financial performance across existing and new investments,” said Deb Orida, Global Head of Real Assets & Chief Sustainability Officer. “We have selected ERM based on their significant and relevant knowledge of the high priority sectors as well as the required technical and commercial skills for complex transformation projects at scale and will explore pilots in the previously identified priority sectors, including power, real estate, and agriculture.”
Following the pilot transformations, CPP Investments and ERM will establish a clear methodology and blueprint for sector and company pathways, allowing similar existing and new portfolio companies to accelerate their decarbonization efforts. The playbook will leverage experience from the initial projects and deliver a competitive advantage to CPP Investments over time. It will set out a standardized road map and performance tracking process aligned with CPP Investments proposed Abatement Capacity Assessment Methodology (“The Future of Climate Change Transition Reporting” October 2021).
“ERM will support CPP Investments to turn board-level strategy into operational implementation, identifying and delivering value accretive decarbonization initiatives and enabling their investment teams to guide existing portfolio companies as well as new investments through transformation opportunities,” said Sabine Hoefnagel, Director of Services, Brand and Communications at ERM. “The finance sector has a significant opportunity to influence and drive the transition to a low-carbon economy and we are excited to bring our strategic and technical expertise to CPP Investments long-horizon capital, building capability that in time will help decarbonize the entire portfolio.”
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ERM’s diverse team of over 5,500 world-class experts in over 150 offices in more than 40 countries supports clients across the breadth of their organizations to operationalize sustainability. Through ERM’s deep technical expertise clients are well positioned to address their environmental, health, safety, risk and social issues. ERM calls this capability its “boots to boardroom” approach for its comprehensive service model that allows ERM to develop strategic and technical solutions that advance objectives on the ground or at the executive level. Learn more
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2021, the Fund totalled $541.5 billion. Learn more