Enhanced Portfolio Carbon Disclosure

CPP Investments introduced enhanced disclosure of its carbon footprint framework, classifying its $787 billion global portfolio across two dimensions: carbon intensity and transition governance. The framework found that 86.7% of the portfolio fell below a threshold that, based on classifications from the International Energy Agency and the Transition Pathway Initiative, indicates harder-to-abate and higher-emitting industries.

Transition governance assesses whether companies demonstrate preparation for climate-related risks, evaluated through approval by the Science Based Targets initiative. Approximately 83.5% of holdings categorized as having confirmed transition governance were covered by third-party indicators, with the remainder assessed using CPP's internal framework.

As institutional investors face growing pressure to demonstrate climate risk management beyond simple emissions totals, CPP Investments' expanded disclosure signals that portfolio-level transition governance metrics are becoming as important as raw carbon intensity for evaluating long-term investment resilience.