MONTREAL, May 19, 2021 /CNW Telbec/ - Addenda Capital, a privately-owned investment management firm, today announced the launch of two new investment funds designed to support Canadian and international companies that are taking the necessary steps to reduce their greenhouse gas (GHG) emissions in pursuit of a net-zero emissions society by 2050.
Both these funds, among the first of their kind in Canada, seek to meet the needs of Canadian institutional investors and high net worth clients. They are the Addenda Climate Transition Canadian Equity Pooled Fund and the Addenda Climate Transition International Equity Pooled Fund.
"These funds are the result of an in-depth reflection among our teams who worked hard to define the true and tangible role that the financial sector must play in the transition," said Roger Beauchemin, President and Chief Executive Officer of Addenda Capital. "We view our approach as more constructive than divestment. We aim to support and encourage companies in their efforts to reduce GHGs in this massive shift that is necessary to transform the Canadian economy and our society for generations to come."
The strategy that Addenda Capital has laid out consists of investing in stocks of public companies that have mapped out their road to transition and engaging with them on a regular basis to encourage them in achieving their carbon objectives. The funds are actively managed by our portfolio management teams and feature selection criteria that will strengthen as time goes on.
"In our view, sustainable investment is the pillar of long-term value creation for our clients," added Roger Beauchemin. "The investment solutions that we offer are intimately linked to an approach we apply throughout our work: the integration of environmental, social and governance (ESG) factors in decision-making has been part of our process for a long time. As leaders in sustainable investing, we favour this strategy to generate compelling financial returns while making the right choices for generations of Canadians to come."
The announcement follows on the footsteps of new climate targets that have been unveiled recently by the Government of Canada. The new target calls for a reduction in GHG emissions of 40 to 45 % below 2005 levels by 2030. A previous target of 30 % had been set as part of Canada's Nationally Determined Contribution (NDC) under the Paris Agreement. According to federal data, the three economic sectors most responsible for GHG emissions in 2019 were oil and gas (26 % of overall emissions), transportation (25 %) and buildings (12 %).
A track record of responsible investing
Co-owned by Co-operators Financial Services and by employees, Addenda has a long history of blending ESG analysis to its investment process. The firm is a signatory of the United Nations' Principles for Responsible Investment (PRI), of the Montreal Carbon Pledge and the Canadian Investor Statement on Diversity & Inclusion.
The funds announced today strengthen Addenda's investment solutions which already include a fund based on sustainable development. Launched in 2018, the Addenda Impact Fixed Income Pooled Fund, one of the first domestically-focused fixed income impact investment funds in Canada, was designed to generate positive impacts while delivering market-like returns.
To know more about our sustainable investing solutions: https://addendacapital.com/en-ca/Sustainable-Investing
About Addenda Capital
Addenda is a privately-owned investment management firm with more than $35 billion in assets under management. Recognized as a leader in sustainable investing, the firm invests for a better future and offers a broad range of strategies, which can be customized to create value for a clientele that includes both institutional investors and high net worth individuals. Addenda's investment processes integrate environmental, social and governance issues in order to deliver higher-quality portfolios and promote sustainable financial markets and proactive stewardship.
Headquartered in Montréal (Québec), Canada, Addenda also has offices in Toronto, Guelph and Regina. It is co-owned by Co-operators Financial Services, a subsidiary of Canadian insurance co-operative The Co-operators Group Limited, and by Employees. Addenda is a Sustaining Member of the Responsible Investment Association (RIA), an Investor Member of the Green Bond Principles and a signatory of both the United Nations' Principles for Responsible Investment (UN PRI) and the Montréal Carbon Pledge.
To learn more, visit addendacapital.com.
SOURCE Addenda Capital Inc.
Josée Yelle, Vice-President, Marketing and Communications, 514-502-9146, [email protected]
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