PSP Investments Highlights Sustainability Progress in Report

Canada’s Public Sector Pension Investment Board on Wednesday published its annual sustainability report highlighting the fund’s progress toward a sustainable portfolio.

The report covered fiscal 2024, which ran from April 1, 2023, through March 31, 2024. It highlighted the growth of green assets in PSP’s portfolio, as well as the fund’s short- and long-term sustainability goals. In addition, PSP Investments also released an annual climate-related financial disclosures report and a 2024 green bond report.

PSP Investments earlier reported achieving an 8.7% return in fiscal 2024, with the fund’s assets growing to C$264.9 billion ($195.04 billion).

PSP Investments manages the investments of pension plans for the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force, among the fund’s 900,000 beneficiaries. The fund reported five- and 10-year net annualized returns of 7.9% and 8.3%, respectively.

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2024 Report Highlights

In its sustainability report, PSP Investments reported holding C$64.9 billion—21.5% of the portfolio—in ‘green assets,’ which the fund classifies as investments in low-carbon activities.

The fund also reported holding C$11.5 billion in transition assets, 3.8% of the portfolio. PSP identifies transition assets as investments committed to making a substantial contribution to the low-carbon transition through establishing targets and disclosure practices.

PSP also reported voting at 5,670 shareholder meetings on 56,638 resolutions in the fiscal year and engaging with 712 public companies within the fund’s portfolio on sustainability-related issues.

“Embedding material sustainability factors into our decisions will be important for achieving our bold ambition to become the best pension investor in the world, by steadfastly delivering on our mandate,” said Deborah Orida, president and CEO of PSP Investments, in the report. “We made significant progress this past year and I am confident that we are well prepared for the next phase of our journey.”

Tech Progress Update

The report also highlighted the fund’s progress in developing a technology-enabled and data-driven approach to collect sustainability information across its portfolio and integrate new processes that support sustainability initiatives.

“Our increasing use of technology and data has been noteworthy in advancing our approach to sustainability,” said Herman Bril, managing director and head of sustainability and climate innovation at PSP Investments, in the report. “With breakthroughs in generative artificial intelligence, we see even more potential to drive efficiencies and develop insights and solutions to issues that can affect the long-term performance of our portfolio and specific assets.”