Latest news with #Caisse
Montreal Gazette
8 hours ago
- Business
- Montreal Gazette
Caisse de dépôt invests $3.2B in a U.K. nuclear plant
The Caisse du dépôt et placement du Québec is making its first direct investment in a nuclear power plant, putting the equivalent of $3.2 billion in the Sizewell C nuclear power plant project in the United Kingdom. The Caisse's investment strategy places a strong emphasis on renewable energy, but the institution has never made a direct investment in a nuclear power plant, its senior vice-president and director of infrastructure, Emmanuel Jaclot, said in an interview. 'Numerous studies show that we will need nuclear power if we want to achieve carbon neutrality worldwide by 2050,' Jaclot said. The U.K. is an ideal location to take this first step, he said. 'We focused on the United Kingdom because there was a sufficiently protective framework for investors, such as the Caisse.' The 1.7-billion-pound investment represents a 20-per-cent stake in the 3.2 GW project, which will supply electricity for 60 years starting in the late 2030s. The Caisse is the second-largest investor after the British government, the largest shareholder with 44.9 per cent. Other shareholders include the French company EDF, the British multinational Centrica and Amber Infrastructure. The announcement was met with surprise, as the Canadian company Brookfield had been expected to be the British government's main partner. The Sizewell C power plant would reduce the U.K.'s dependence on hydrocarbons and reduce carbon emissions by 9 million tonnes annually. Environmentalists are divided on nuclear power. It offers an alternative to hydrocarbons for reducing carbon dioxide emissions, but it produces radioactive waste that must be managed over many years. The U.K. cannot rely on hydroelectricity like Quebec, Jaclot said. Solar and wind power can complete the energy mix, but their output varies depending on weather conditions. Nuclear power offers a more consistent base load. A hedge against cost overruns In London, however, the project has been criticized for its cost overruns. The bill is now estimated at 38 billion pounds, almost double the previous estimate of 20 billion. 'It's an extremely expensive project,' Alison Downes, director of the Stop Sizewell C organization, said in a telephone interview. 'It's a risky project, and the history of similar projects has been simply catastrophic in terms of costs and timelines.' Jaclot said he is well aware that nuclear power plant projects have a history of cost overruns. 'That's obviously something we had in mind when we were thinking about this.' The risk-sharing model reduces the Caisse's exposure in the event of a problem, he said. The institution will receive compensation 'from Day 1' during the construction phase. This compensation could be higher if the project is delivered early, or lower in the event of a delay. The Caisse has a mechanism with the British government that protects its return in the event of cost overruns or significant delays, Jaclot said. Sizewell C would also be built from the plans of an existing power plant, which would reduce design risks. 'There are a lot of lessons learned that will be incorporated into the project,' he said. The Caisse did not provide a range for the potential return, but Centrica, another shareholder, suggested a return of 'almost' 11 per cent. The company indicated that performance would remain 'acceptable,' even with cost overruns, according to comments reported by the British daily The Guardian. The assurances given to investors, however, irritate Downes. She believes the Caisse is taking a reputational risk by embarking on the project. 'The Caisse is certainly happy to have a guaranteed return during construction, but it would be at the expense of British households.' Household electricity bills would increase by one pound per month to finance the construction of the project, according to estimates, 'with the nuclear plant to deliver cheaper clean power for decades to come once operational,' the U.K. government said in a statement. A YouGov poll published in June shows 55 per cent of Britons support a new nuclear power station, while 23 per cent are opposed and 22 per cent undecided. Jaclot said he was aware that nuclear energy production comes with 'a number of risks and potential reputational issues. 'We have really tried to resolve all the issues that could arise around the nuclear program. We have managed, through negotiations with the government, to eliminate most of these risks.' Ocean Group, Innergex investments The Caisse also announced Tuesday it and Investissement Québec are investing $145 million to acquire an equal share of marine services company Ocean Group. Founder Gordon Bain and senior management will retain control of the Quebec City-based company. Economy Minister Christine Fréchette stated that with this investment, the government is ensuring that this Quebec gem remains within the province and 'consolidating Quebec's position in the defence industry.' And on Monday it finalized the acquisition of Longueuil-based renewable energy company Innergex, with Investissement Québec, Desjardins, and Fondaction joining as shareholders of the now privately held company. The Caisse announced the deal in February, for $13.75 per share and $25 for preferred shares, giving it a value of $10 billion including debt. There are also 14 Swiss institutional investors in the company.
Canada Standard
27-06-2025
- Business
- Canada Standard
CDPQ Boosts Climate Investments While Other Pensions Maintain Fossil Industry Ties
One of Canada's leading pension funds has pledged to dramatically increase its "climate action" investments to $400 billion by 2030, while a watchdog group warns that many other funds are unduly influenced by fossil fuel-affiliated directors on their boards. The $400-billion target showed up in a five-year climate strategy released last week by the Caisse de depot et placement du Quebec (CDPQ). The Caisse had already surpassed its previous goal, established in 2021, to invest $54 billion in low-carbon assets and another $10 billion in "industrial decarbonization" by 2025, ESG Today reports. At the end of last year, CDPQ reported total assets of $473 billion. "In 2025, we are entering a new phase in our climate strategy with the ambition to accelerate the decarbonization of companies and the economy," the eight-page strategy states [ pdf ]. "This is the best approach for long-term performance for our depositors." "We are reaffirming our sustainable investing convictions because they are at the heart of our fiduciary responsibility," said CDPQ President and CEO Charles Emond. "We are demonstrating even greater ambition by going beyond calculating our portfolio's carbon emissions to work even harder on transitioning the real economy across all sectors by encouraging the companies we invest in to adopt clear and credible decarbonization plans. We do this with a view to long-term value creation and sound risk management for our depositors." View our latest digests The strategy includes: Helping companies "seize business opportunities and set decarbonization goals"; Select companies that have set climate transition plans and can explain how they intend to meet them; Invest in less "climate-mature" industries or companies "to help them reduce their carbon footprints"; Rely on international best practices to assess the quality of companies' transition plans. The strategy "reveals a credible, comprehensive and clear-eyed plan to protect Quebec pensions by achieving net-zero by 2050 and investing in a safe climate future," Toronto-based Shift Action for Pension Wealth and Planet Health said in a release. "The strategy further positions CDPQ as a global climate leader among institutional investors and exposes yawning shortcomings in the climate strategies of many other Canadian pension managers, particularly the Canada Pension Plan Investment Board." This week, Shift released an analysis of fossil fuel influence on Canadian pension boards, an update of a report the organization first produced in 2022. The original report concluded that seven of the country's 10 biggest pension funds had at least one fossil executive on their boards. This year's research determined that: CPPIB, which abandoned is 2050 net-zero commitment last month, has three fossil directors, accounting for 30% of its board seats. Alberta Investment Management Corporation (AIMCo), where the Alberta government recently purged the previous board, has two, including former prime minister Stephen Harper as chair. The Ontario Teachers' Pension Plan has two directors who "sit on the boards of fossil fuel companies pushing to expand pipelines, build [liquefied natural gas] terminals, and dismantle key climate policies." The Public Sector Pension Investment Board (PSP) and Ontario Municipal Employees Retirement System (OMERS) have one each. The report lays out the systemic risks pension funds face as a result of climate change and the transition off carbon, warning that management decisions in response "may be compromised when those at the helm have ties to the fossil fuel industry." It lays out a scenario in which a pension fund board member who's also a director of an oil and gas company must weigh their duty to the fund against the legal imperative to maximize their company's profit. "When the pension fund evaluates whether to continue investing in oil and gas, does that director advocate for the sector's short-term interests-or for the long-term financial security of a 30-year-old plan member who won't retire for decades?" the report asks. "This reflects a deep structural conflict: how can a director reconcile their legal obligation to maximize shareholder value for a fossil fuel company with their fiduciary duty to act in the best long-term interests of pension beneficiaries facing escalating climate risk?" Shift adds that, "critically, pension funds do not disclose whether conflicted directors recuse themselves from such decisions. This lack of transparency makes it impossible to determine how-or whether-conflicts of interest are managed. It is also unclear whether pension trustees, directors, and sponsors have the climate expertise to understand how these overlapping roles can create potential conflicts which could negatively impact long-term returns for beneficiaries." Source: The Energy Mix
Canada News.Net
27-06-2025
- Business
- Canada News.Net
CDPQ Boosts Climate Investments While Other Pensions Maintain Fossil Industry Ties
One of Canada's leading pension funds has pledged to dramatically increase its "climate action" investments to $400 billion by 2030, while a watchdog group warns that many other funds are unduly influenced by fossil fuel-affiliated directors on their boards. The $400-billion target showed up in a five-year climate strategy released last week by the Caisse de depot et placement du Quebec (CDPQ). The Caisse had already surpassed its previous goal, established in 2021, to invest $54 billion in low-carbon assets and another $10 billion in "industrial decarbonization" by 2025, ESG Today reports. At the end of last year, CDPQ reported total assets of $473 billion. "In 2025, we are entering a new phase in our climate strategy with the ambition to accelerate the decarbonization of companies and the economy," the eight-page strategy states [ pdf ]. "This is the best approach for long-term performance for our depositors." "We are reaffirming our sustainable investing convictions because they are at the heart of our fiduciary responsibility," said CDPQ President and CEO Charles Emond. "We are demonstrating even greater ambition by going beyond calculating our portfolio's carbon emissions to work even harder on transitioning the real economy across all sectors by encouraging the companies we invest in to adopt clear and credible decarbonization plans. We do this with a view to long-term value creation and sound risk management for our depositors." View our latest digests The strategy includes: Helping companies "seize business opportunities and set decarbonization goals"; Select companies that have set climate transition plans and can explain how they intend to meet them; Invest in less "climate-mature" industries or companies "to help them reduce their carbon footprints"; Rely on international best practices to assess the quality of companies' transition plans. The strategy "reveals a credible, comprehensive and clear-eyed plan to protect Quebec pensions by achieving net-zero by 2050 and investing in a safe climate future," Toronto-based Shift Action for Pension Wealth and Planet Health said in a release. "The strategy further positions CDPQ as a global climate leader among institutional investors and exposes yawning shortcomings in the climate strategies of many other Canadian pension managers, particularly the Canada Pension Plan Investment Board." This week, Shift released an analysis of fossil fuel influence on Canadian pension boards, an update of a report the organization first produced in 2022. The original report concluded that seven of the country's 10 biggest pension funds had at least one fossil executive on their boards. This year's research determined that: CPPIB, which abandoned is 2050 net-zero commitment last month, has three fossil directors, accounting for 30% of its board seats. Alberta Investment Management Corporation (AIMCo), where the Alberta government recently purged the previous board, has two, including former prime minister Stephen Harper as chair. The Ontario Teachers' Pension Plan has two directors who "sit on the boards of fossil fuel companies pushing to expand pipelines, build [liquefied natural gas] terminals, and dismantle key climate policies." The Public Sector Pension Investment Board (PSP) and Ontario Municipal Employees Retirement System (OMERS) have one each. The report lays out the systemic risks pension funds face as a result of climate change and the transition off carbon, warning that management decisions in response "may be compromised when those at the helm have ties to the fossil fuel industry." It lays out a scenario in which a pension fund board member who's also a director of an oil and gas company must weigh their duty to the fund against the legal imperative to maximize their company's profit. "When the pension fund evaluates whether to continue investing in oil and gas, does that director advocate for the sector's short-term interests-or for the long-term financial security of a 30-year-old plan member who won't retire for decades?" the report asks. "This reflects a deep structural conflict: how can a director reconcile their legal obligation to maximize shareholder value for a fossil fuel company with their fiduciary duty to act in the best long-term interests of pension beneficiaries facing escalating climate risk?" Shift adds that, "critically, pension funds do not disclose whether conflicted directors recuse themselves from such decisions. This lack of transparency makes it impossible to determine how-or whether-conflicts of interest are managed. It is also unclear whether pension trustees, directors, and sponsors have the climate expertise to understand how these overlapping roles can create potential conflicts which could negatively impact long-term returns for beneficiaries."
Montreal Gazette
07-05-2025
- Business
- Montreal Gazette
Plans to sell REM trains to the U.S. have been scrapped, Caisse says
After dreaming of exporting its light automated rail service (REM) to the United States, the chairman of Quebec's Caisse de dépôt et placement du Québec told a legislative committee on Tuesday the idea had been scrapped. Charles Emond told Liberal MNA Frédéric Beauchemin that the context in which the pension fund had several conversations in 2018 about exporting the service had changed. 'I have no intention of exporting the model to the United States in the same way it was discussed at the time,' Emond said. 'All of the team is concentrated on delivering the project (the REM expansion in Montreal) in its entirety.' Emond justified the change in policy by noting that 'charity begins at home.' His comments come as the existing REM service between Brossard and Central Station continues to be interrupted because of what operators describe as ' technical issues ' or, in some cases, winter weather. Meanwhile, the Caisse defended its investments and operations in India in the wake of what the Liberal opposition is describing as a 'scandal' hit the institution. The Caisse invested US$470 million in Azure Power Global, an India-based solar energy company that is now worth no more than US$100 million because of questionable business practices and corruption. Emond said Quebecers 'should not be worried,' saying the incident was an isolated case.
Yahoo
13-02-2025
- Sport
- Yahoo
Hall of Fame hosts 15th annual youth all-star games
SPRINGFIELD, Mass. (WWLP) – The Naismith Basketball Hall of Fame hosted the 15th annual basketball all-star games on Wednesday. The annual game is put together by the Holyoke Safe Neighborhood Initiative and C3 City Wide Program. Their goal is to create a healthy environment for students in grades 3 through 8 and teach youth the fundamentals of basketball, teamwork, sportsmanship, and hard work. The organizer Eddie Caisse told 22News the impact he's seen the game have on the kids who participate. 'We have seen kids come in like 5th and 6th grade, where you see that they were heading down wrong roads even at that young of an age to see years later turn their life around, graduate high school, go to college or the military,' said Caisse. Caisse also told 22News that these games are not possible without the help of the local agencies and coaches who volunteer and continue to take this program to the next level. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
