Long-term investing is at the core of our identity at Caisse de dépôt et placement du Québec (CDPQ). We see it as a journey, not a destination, and this perspective informs our decision-making processes.
As a global investment group, we have responsibilities to multiple stakeholders wherever we do business. This means we look beyond immediate financial outcomes to leverage a broader viewpoint focused on sustainability when we make decisions.
We are a provider of “constructive capital,” which means that our capital allocations drive performance and progress. This approach leads us to innovations that will build stronger companies and benefit the communities where we invest.
Helping companies decarbonize the highest-emitting sectors and achieve science-based targets
That’s why we are also acutely aware of our role in bringing positive and constructive change in light of the climate crisis. One example of the steps we are taking is our CAD 10-billion envelope focused on accelerating the climate transition. Our goal is not just to decarbonize our own portfolio, but also to foster the transition of the real economy. So with this envelope, we are engaging in the tough work of decarbonizing the highest-emitting sectors, like steel, lithium, plastics and copper. We help companies achieve the science-based targets that we set, and we will measure and report on our own progress annually. In the long term, we expect these companies to be better positioned to thrive and to outperform as a result.
Deploying capital to Quebec companies impacted by pandemic
For us, the turbulence of the pandemic has been another opportunity to use our capital constructively. In the first weeks of the crisis, CDPQ deployed a CAD 4-billion envelope to support Québec companies temporarily affected by it while having good prospects for long-term profitability. We also engaged operationally with concrete measures to help the retail tenants of our real-estate subsidiary, Ivanhoé Cambridge, which were hard hit by the pandemic. Elsewhere in our portfolio, Lightspeed, a Canadian e-commerce software firm, was surging. We saw the connection and gave Ivanhoé Cambridge’s tenants free access to its software for a year, helping them to make major strides on the digital commerce front while boosting Lightspeed’s growth with new clients.
Holding ourselves and the companies we invest in to the highest standards
Our “constructive capital” approach is inherently a long-term one. CDPQ cannot fulfill its dual mandate—delivering optimal returns and contributing to the development of Québec’s economy—by observing the markets and merely capitalizing on current opportunities. We create our own through our unique perspective while holding ourselves—and the companies we invest in—to the highest standards. This mindset permeates every aspect of our investing, including asset allocation, portfolio construction, stewardship investing and risk management. Doing it well makes our capital truly “constructive.”