PSP Investments' 2022 Responsible Investment Report demonstrates continued momentum on climate change commitments, data integration and active ownership | Canada News Media
PSP Investments’ 2022 Responsible Investment Report demonstrates continued momentum on climate change commitments, data integration and active ownership
MONTRÉAL, Nov. 10, 2022 /CNW Telbec/ – The Public Sector Pension Investment Board (PSP Investments) today published its annual Responsible Investment Report, which outlines how the organization seeks to integrate material environmental, social and governance (ESG) factors in its investment practices. Accompanying reporting also includes PSP Investments’ climate-related financial disclosures based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
“Given our long-term horizon, sustainability factors are inextricably linked to our ability to achieve our investment objectives,” said Deborah Orida, President and Chief Executive Officer, PSP Investments. “I look forward to working with colleagues across our organization to deepen and leverage our sustainability expertise to make the most well-informed investment decisions for the contributors and beneficiaries of the pension plans we support.”
The 2022 Responsible Investment Report features updates on PSP Investments’ inaugural Climate Strategy Roadmap, including key achievements and upcoming priorities. PSP Investments’ climate change approach continues to strengthen and evolve, seeking to become increasingly data-driven, linked to asset-level value creation and technology-enabled in our due-diligence and engagement workflows.
“As the world grapples with the lingering pandemic, increasing pressure from climate change and other disruptive forces that are intersecting critically with geopolitics and affecting society and the economy – we believe that considering material ESG risk factors and opportunities in our decision-making is more important than ever,” said Eduard van Gelderen, Senior Vice President and Chief Investment Officer at PSP Investments.
Among the significant milestones reached during fiscal year 2022:
Climate strategy
Launched a climate strategy which sets out emissions reduction targets across investment portfolios which we believe are ambitious but achievable. Through its investment and engagement efforts, PSP Investments aims to reduce portfolio GHG emissions intensity by 20-25% by 2026, relative to a 2021 baseline.
Released a comprehensive Green Bond Framework and issued a C$1.0 billion green bond, PSP’s first-ever such issuance, to fund specific climate and environmental projects and to meet growing investor demand for sustainable products. The Framework was awarded an environmental rating of “medium green” and the highest possible governance score of “excellent” by CICERO Shades of Green.
Developed a bespoke green asset taxonomy to better assess portfolio exposure to different types of climate-relevant investments, and to support the transition to global net-zero emissions by 2050. The taxonomy is a quantitative and qualitative framework that is based on investee companies’ carbon intensity and an assessment of the credibility of their transition plans.
Enhanced disclosure of how PSP Investments manages climate change-related financial risks and responds to opportunities, based on the recommendations of the TCFD. For the first time, PSP Investments is disclosing a portfolio financed emissions metric, informed by guidance from the Partnership for Carbon Accounting Financials (PCAF), and drawing on emerging innovations and best practices.
A data-driven approach
Developed the ESG composite score, a proprietary scoring system which is designed to enable the quantitative assessment and monitoring of a [portfolio] company’s performance on key ESG considerations.
Significantly increased the self-reported GHG data available from PSP Investments’ portfolio companies, which was critical for developing the climate strategy and setting emissions-reduction targets.
Introduced total-fund ESG key performance indicators for tracking progress in the areas of climate change, diversity and inclusion, business ethics, cybersecurity and data privacy, and human capital management.
Creating value through active ownership
Engaged with 811 listed companies on key ESG issues, as a means of encouraging responsible business practices. Of the various engagements, 346 had climate-related objectives.
Voted at 5,837 shareholders’ meetings on 58,678 resolutions. Approximately 21% of the votes were against management, mainly related to board diversity.
Conducted 14 cybersecurity assessments of PSP Investments’ portfolio companies to help these firms protect themselves against cybersecurity risks.
“As a long-term investor, we believe that promoting sustainability adds value to our investments. We are working with our partners and portfolio companies to consider their environmental and social impacts in managing those investments,” said Herman Bril, Managing Director and Head of Responsible Investment at PSP Investments. “By actively embracing this opportunity, we believe we can support the achievement of our mandate.”
To read PSP Investments’ 2022 Responsible Investment and TCFD reports, visit our website here.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $230.5 billion of net assets under management as of March 31, 2022. It manages a diversified global portfolio composed of investments in capital 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.
SOURCE PSP Investments
For further information: Media Contact: Maria Constantinescu, PSP Investments, Phone: (514) 218-3795 | 1 844 525 3795, Email: Source link
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
