Canadian second-largest pension fund CDPQ has announced plans to complete its exit from oil production by the end of 2022.
It will divest its remaining oil-production assets, which make up around 1% of its CAD$390 billion (£228bn) portfolio, by the end of next year to avoid contributing to the growth of the world’s oil supply.
The announcement is part of the global investment group’s ambitious new plan to fight climate change, which includes a target to reduce carbon intensity by 60% by 2030.
CDPQ also aims to hold CAD$54 billion (£31.5bn) in green assets by 2025 to “actively contribute” to a more sustainable economy as well as invest CAD$10 billion (£5.8bn) to decarbonise carbon-emitting sectors.
Charles Emond, President and CEO of CDPQ said: “The climate situation affects everyone and we can no longer address it with the same methods used a few years ago. The urgent need to act demands that we do more, faster and that we innovate. We have to make important decisions on issues such as oil production and decarbonising sectors that are essential to our economies.
“With this new strategy, we are demonstrating our leadership as an investor and enter the next stage of climate investing. We believe this is in the interests of our depositors, our portfolio companies and the communities we invest in.”