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The Co-operators discloses carbon footprint of equity investments


November 30, 2015   by Canadian Underwriter


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The Co-operators Group Limited announced on Monday that it will publicly disclose the carbon footprints of its equity portfolios.

The Co-operators said that it is the first Canadian insurance company to sign on to the Montréal Carbon Pledge

The Co-operators said in a press release that, as the first Canadian insurance company to sign on to the Montréal Carbon Pledge, it is living up to its commitment as a signatory. By signing the pledge, organizations commit to annually measure and disclose their investments’ carbon footprints as part of an effort to better understand the investment implications of climate change, the Co-operators said in the statement.

The Montréal Carbon Pledge was launched in September 2014 and is supported by the United Nations Environment Programme Finance Initiative and the Principles for Responsible Investment. More than 100 organizations from around the world have now signed on, and 2015 is the first year they are required to disclose the carbon footprints of their equity portfolios.

“The Co-operators is committed to disclosing the same information related to its fixed income and preferred share portfolios next year,” the statement added.

“Climate change will have a significant impact on financial markets and investment returns across many asset classes, creating risks and opportunities we must manage effectively in the years ahead,” said Kathy Bardswick, president and CEO of The Co-operators, in the statement. “We are committed to sustainable investing and recognize the importance of measuring and better understanding carbon footprints and other climate-related risks.” [click image below to enlarge]

In 2014, The Co-operators equity investments “owned” a total of 64,914 tonnes of carbon dioxide-equivalent GHG emitted by companies in its portfolio

The Co-operators uses two metrics to measure and monitor the carbon footprints of its investments, the company said on its website: owned carbon emissions measures its share of the absolute greenhouse gas (GHG) emissions of each of the investments; and weighted average carbon intensity shows the average carbon intensity (emissions per revenue generated) of its investments, revealing its exposure to carbon-intensive companies). In 2014, The Co-operators equity investments “owned” a total of 64,914 tonnes of carbon dioxide-equivalent GHG emitted by companies in its portfolio. “This carbon footprint far exceeds emissions from our operations, which totalled 19,403 tonnes of CO2-equivalent emissions in 2014,” the company said.

The Co-operators group of companies has more than $8 billion in invested assets, which are administered by its subsidiary, Addenda Capital, also a signatory to the pledge. The Co-operators group is a Canadian-owned co-operative with more than $40 billion in assets under administration and offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products.


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