In its action plan, the Fonds pledged to cease financing hydrocarbon exploration and extraction projects in Québec and to assume a leadership role in the just energy transition.
INTERNATIONAL INVESTMENT STATEMENT ON A JUST ENERGY TRANSITION
To assume its leadership role, the Fonds also joined the first group of investors that signed an international statement on a just energy transition. This initiative from the London School of Economics and the Harvard Kennedy School involves over 100 investors with approximately US$5 trillion in assets under management. The Fonds was the only Canadian organization to serve on the advisory committee whose work led to the preparation of a guide for investor action and the drafting of the statement itself. The guide was also produced in partnership with Principles for Responsible Investment (PRI), of which the Fonds has been a member since 2011, as well as the International Trade Union Confederation (ITUC).
GROW OUR GREEN BOND INVESTMENTS
In keeping with its commitment to grow the proportion of green bonds in its bond portfolio, the Fonds has increased its investments in government, institutional and corporate green bonds. Over the last year, the green bond proportion doubled from 5.0% to 9.9% of the Fonds’ bond portfolio to stand at approximately $342 million as at May 31, 2019.
THE FONDS CONTINUES ITS SHAREHOLDER ENGAGEMENT WITH PORTFOLIO COMPANIES
For the first time in its history, the Fonds submitted a shareholder proposal at the 2019 annual general meeting of a Canadian oil and gas company, requesting that it set GHG emissions reduction targets that are aligned with the Paris Agreement objective of limiting global warming to 2°C above pre-industrial levels. The proposal was strongly supported by shareholders, with 10.6% of votes in favour of it, significant support rate for a first-time proposal.