CPP Investments, the investment manager of the Canada Pension Plan, announced the launch of a new climate disclosure framework to analyze its global portfolio carbon footprint, including new disclosures on carbon intensity and transition governance indicators across the fund’s holdings.
The organization said that it has reported portfolio carbon footprint metrics since 2018, with the enhanced reporting aimed at providing a point-in-time view of the composition of its carbon footprint by classifying individual portfolio holdings across two dimensions, Carbon Intensity and Transition Governance.
Carbon Intensity measures a company’s Scope 1 and 2 greenhouse gas emissions relative to enterprise value, using tonnes of CO₂ equivalent per $1 million of Enterprise Value Including Cash. CPP Investments uses a threshold of 40 tCO₂e/$M EVIC to identify assets in harder-to-abate industries and those with elevated carbon intensity relative to the portfolio.
Transition Governance assesses evidence that a company has taken steps to understand and prepare for transition-related risks and opportunities. Companies are categorized as Confirmed if they meet at least one of three indicators, including SBTi-approved targets, TPI Level 4 or 5, or participation in CPP Investments’ Decarbonization Investment Approach (DIA).
Richard Manley, Chief Sustainability Officer, CPP Investments, said:
“CPP Investments’ investment approach continues to be grounded in disciplined underwriting, active ownership and a belief that the transition to a lower-carbon economy will unfold unevenly across sectors and regions. Because companies will respond differently to these changes, this disclosure provides additional transparency into carbon intensity and transition governance indicators across our portfolio of assets while remaining consistent with our mandate and climate change principles.”
The organization said that according to its framework analysis, 86.7% of CPP Investments’ C$787 billion investment portfolio as of March 31, 2026, excluding government-issued securities, was below the 40 tCO₂e/$M EVIC threshold. Of investments categorized as having confirmed evidence of transition governance, approximately 83.5% of the investments included as “evidence confirmed” were covered by third party transition governance indicators (SBTi and TPI) with the remainder covered by the DIA (16.5%).
CPP Investments said that the new metrics will be disclosed annually alongside its portfolio carbon footprint.
John Graham, President & CEO, CPP Investments, said:
“Our investment strategy remains focused on delivering long-term value to help ensure the Canada Pension Plan’s financial sustainability for many generations. We consider material risks, including climate-related risks and opportunities, to support risk-adjusted returns over decades. We know that progress towards a lower-carbon future will not be linear, and we are committed to continued transparency as we invest across sectors and work with companies to reduce risk and preserve value.”
