CPP Investments finds 86.7% of portfolio below carbon-intensity threshold

24 / 08 / 2026

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Canada Pension Plan Investment Board (CPP Investments) has released additional portfolio-level data on its carbon footprint, offering a snapshot of carbon intensity and transition governance across its holdings.

The disclosure covers CPP Investments’ $787 billion investment portfolio as of March 31, 2026, excluding government-issued securities. It found that 86.7% of the portfolio was below the 40 tCO₂e/$M EVIC carbon-intensity threshold.

Carbon intensity gives investors portfolio-wide view:

CPP Investments has reported portfolio carbon-footprint metrics since 2018. The enhanced disclosure classifies individual holdings across two dimensions: Carbon Intensity and Transition Governance.

Carbon Intensity measures a company’s Scope 1 and Scope 2 greenhouse gas emissions relative to its enterprise value, using the Partnership for Carbon Accounting Financials (PCAF) metric of tonnes of carbon dioxide equivalent per $1 million of Enterprise Value Including Cash (tCO₂e/$M EVIC).

CPP Investments set the threshold at 40 tCO₂e/$M EVIC based on analysis using the S&P Global LargeMid Cap reference portfolio and GICS Level 3 industry classifications, alongside definitions of “hard to abate” and “high emitting” from the International Energy Agency and the Transition Pathway Initiative (TPI).

The fund stressed that holdings above the threshold are not necessarily high-emitting or at higher transition risk, while those below it are not necessarily low-emitting or at lower transition risk.

83.5% of confirmed investments have external transition indicators:

The Transition Governance assessment looks for evidence that companies have taken steps to understand and prepare for transition-related risks and opportunities.

Companies are classified as “Confirmed” if they show evidence of at least one of three indicators: Science Based Targets initiative (SBTi)-approved targets, TPI Level 4 or 5 ratings, or participation in CPP Investments’ Decarbonization Investment Approach (DIA).

Holdings that do not meet these criteria, or cannot yet be assessed because of data limitations or insufficient external coverage, are classified as “Unconfirmed”.

Of the investments classified as “evidence confirmed,” 83.5% were covered by third-party transition governance indicators through SBTi and TPI, while the remaining 16.5% were covered through CPP Investments’ DIA.

CPP Investments links disclosure to long-term returns:

“Our investment strategy remains focused on delivering long-term value to help ensure the Canada Pension Plan’s financial sustainability for many generations,” said John Graham, President and CEO of CPP Investments.

“We consider material risks, including climate-related risks and opportunities, to support risk-adjusted returns over decades,” Graham said, adding that the transition to a lower-carbon economy “will not be linear.”

“We are committed to continued transparency as we invest across sectors and work with companies to reduce risk and preserve value,” he said.

CPP Investments said its Climate Change Principles, including regular reporting on portfolio emissions, help guide how it fulfills its mandate amid rising climate-related risks and opportunities as the global economy transitions.