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Addenda Capital is first Canadian asset manager to disclose carbon footprints of all its equity funds


Canadian investment management firm Addenda Capital has signed the Montréal Carbon Pledge, a commitment to measure and disclose the carbon footprints of its investment portfolios as part of an effort to better understand the investment implications of climate change.

As a signatory to the Montréal Carbon Pledge, Addenda Capital has compiled greenhouse gas (GHG) emissions data for companies and will use this data in their investment decisions and discussions with companies regarding their GHG emissions and the climate change related risks and opportunities that they face. Addenda Capital will consider both direct and indirect GHG emissions in the context of expected regulatory changes as well as potential physical impacts and other climate change related risks.
"Experts agree that GHG emissions cause climate change, so sooner or later there will have to be a price on carbon. As an investor, this will make carbon emissions as important as other key financial metrics in keeping score," says Roger Beauchemin (pictured), President and Chief Executive Officer of Addenda Capital. "It's not only a matter of being socially and environmentally conscious; it is a matter of doing sound analysis for long-term investment. Measurement is the first step and that is why we are the first firm to be disclosing the footprint of our equity funds. For us, signing the Montréal Carbon Pledge shows that Addenda Capital understands a challenge that the financial markets will have to face sooner rather than later. It makes us a better investor!"
The Montréal Carbon Pledge was launched on 25 September, 2014 at the United Nations-supported Principles for Responsible Investment (PRI) annual meeting in Montréal. Signatories commit to measure and disclose their investments' carbon footprint annually by December 2015. More than 95 institutional investors, including seven others from Canada, have signed the pledge. More than USD 8 trillion of assets under management have already committed to the Pledge, well in excess of the goal to attract USD 3 trillion of portfolio commitment in time for the United Nations Climate Conference (COP21) which will be held in Paris in December 2015. The pledge is supported by the PRI and the United Nations Environment Programme Finance Initiative.
"The greenhouse gas emissions captured by carbon footprints are just one aspect of climate risk and we recognise there is still missing data despite investors asking companies to disclose their emissions for years," says Jim MacDonald, Co-Chief Investment Officer of Addenda Capital. "We firmly believe that our clients, and society, will be better served if we actively encourage the companies we invest in to provide better disclosure around their carbon intensity. This would help us to better understand risks and opportunities."
"We salute the leadership of Addenda Capital in becoming a signatory to the Montréal Carbon Pledge and disclosing the carbon footprints of their funds. As the United Nations climate conference in Paris is fast approaching, Addenda Capital is communicating a clear message that the investment community must understand the economic ramifications of climate change. They have recognised that carbon emissions need to be priced and are acting accordingly," says Fiona Reynolds, Managing Director of the PRI.

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