MONTRÉAL, Oct. 8, 2015 /CNW Telbec/ - Addenda Capital, one of the largest investment management firms in Canada, with assets under management of CAD 24.5 billion, announced today that it has signed the Montréal Carbon Pledge, a commitment to measure and disclose the carbon footprints* of its investment portfolios as part of an effort to better understand the investment implications of climate change. This announcement makes Addenda Capital the first investment firm to disclose the carbon footprint of all its equity funds.
As a signatory to the Montréal Carbon Pledge, Addenda Capital has compiled greenhouse gas ("GHG") emissions data for companies and will use this data in their investment decisions and discussions with companies regarding their GHG emissions and the climate change related risks and opportunities that they face. Addenda Capital will consider both direct and indirect GHG emissions in the context of expected regulatory changes as well as potential physical impacts and other climate change related risks.
"Experts agree that GHG emissions cause climate change, so sooner or later there will have to be a price on carbon. As an investor, this will make carbon emissions as important as other key financial metrics in keeping score," said Roger Beauchemin, President and Chief Executive Officer of Addenda Capital. "It's not only a matter of being socially and environmentally conscious; it is a matter of doing sound analysis for long-term investment. Measurement is the first step and that is why we are the first firm to be disclosing the footprint of our equity funds. For us, signing the Montréal Carbon Pledge shows that Addenda Capital understands a challenge that the financial markets will have to face sooner rather than later. It makes us a better investor!"
The Montréal Carbon Pledge was launched on September 25, 2014 at the United Nations-supported Principles for Responsible Investment (PRI) annual meeting in Montréal. Signatories commit to measure and disclose their investments' carbon footprint annually by December 2015. More than 95 institutional investors, including 7 others from Canada, have signed the pledge. More than USD 8 trillion of assets under management have already committed to the Pledge, well in excess of the goal to attract USD 3 trillion of portfolio commitment in time for the United Nations Climate Conference (COP21) which will be held in Paris in December 2015. The pledge is supported by the PRI and the United Nations Environment Programme Finance Initiative.
"The greenhouse gas emissions captured by carbon footprints are just one aspect of climate risk and we recognize there is still missing data despite investors asking companies to disclose their emissions for years," said Jim MacDonald, Co-Chief Investment Officer of Addenda Capital. "We firmly believe that our clients, and society, will be better served if we actively encourage the companies we invest in to provide better disclosure around their carbon intensity. This would help us to better understand risks and opportunities."
"We salute the leadership of Addenda Capital in becoming a signatory to the Montréal Carbon Pledge and disclosing the carbon footprints of their funds. As the United Nations climate conference in Paris is fast approaching, Addenda Capital is communicating a clear message that the investment community must understand the economic ramifications of climate change. They have recognized that carbon emissions need to be priced and are acting accordingly," commented Fiona Reynolds, Managing Director of the PRI.
About Addenda Capital
Addenda Capital manages over CAD 24.5 billion in investment assets on behalf of pensions, insurance and other institutions as well as high net worth clients. With offices in Montréal, Guelph, Toronto and Regina, we offer clients tailor-made portfolios using a broad range of asset classes and strategies. Our approach to sustainable investment focuses on integrating environmental, social and governance issues into our investment processes. Our mission is to add value through independent research, active management, innovation, discipline and integrity and to nurture genuine partnerships with our clients. We became a signatory to the United Nations-supported Principles for Responsible Investment in 2012.
*A carbon footprint is the weighted average carbon intensity of portfolio and is measured in units of tonnes of carbon dioxide equivalent emitted per million dollars of sales per year.
SOURCE Addenda Capital Inc.
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For further information: Michel Jalbert, CFA, FCIA, FSA, Senior Vice-President, Business Development & Client Partnerships, 514-908-7910, [email protected]; Brian Minns, CFA, Manager, Sustainable Investing, 647-253-1029, [email protected]; Media inquiries, please contact: Dominic Simard, Account Manager, 514-315-1965, [email protected]