Climate Change
One of the greatest and most pressing sustainability issues of our time is climate change, a phenomenon that has already had, and will continue to have, a significant impact on ecosystems, economies and communities around the world.
As an investor, employer, and contributor to the communities in which we are established, we recognize our responsibility to help create a future where prosperity is harmonized with addressing the critical challenge of climate change.
We work to reduce the energy use and environmental impacts associated with our activities and collaborate with our group companies in their efforts to likewise reduce their impact. Finding ways to reduce energy consumption is essential to operating a sustainable business. It enables the reduction of greenhouse gas (GHG) emissions that contribute to climate change, while helping our businesses address the rising demand for, and cost of, energy.
Our Strategy
Our strategy for adapting to climate change is focused on positioning our business positively within the context of a low-carbon economy and supporting policies that advance solutions that address the tangible impacts of climate change. At the holding company level, we worked diligently to reduce our environmental footprint and limit the impacts associated with the topics mentioned above by focusing our environmental priorities on:
-
Reducing our energy and carbon footprint
-
Increasing the use of renewable resources
-
Preventing, reducing and diverting waste from landfills
-
Procuring products and services responsibly
To that end, we provide training to our employees on our Environmental Policy and Responsible Procurement Policy. Since our limited energy and carbon footprint is mostly tied to business travel and the use of electricity and natural gas at our Montréal head office ― where the majority of our business activities are undertaken ― as well as at our Toronto office, our energy and carbon efficiency strategy is mainly focused on reducing the energy consumption from our office buildings. We engage with our subsidiary Square Victoria Real Estate regarding opportunities to further reduce our energy consumption and GHG emissions, as well as with our suppliers and contractors to influence the provision of environmentally friendly products and services for our business. We monitor and track our performance regarding waste, water and energy.
In addition, we engage with our major publicly traded operating companies, Great-West Lifeco and IGM Financial, as well as with our wholly owned operating companies, regarding climate and the energy and carbon management strategies they establish and implement. This engagement is twofold: first, as part of our annual data collection process for the purposes of our environmental public disclosure, and second, as part of our active ownership approach, recognizing that climate change could potentially impact the companies in which we have investments. The Corporation engages the senior management of its major operating and portfolio companies to further strengthen its ESG integration analysis of company-specific climate change risks and opportunities, where relevant, such as: climate-related regulations, government incentives that support renewable energy markets, exposure to weather events that could impact our investments, corporate properties, and information technology systems, and business continuity plans at office locations.
In 2020 and 2021, the Corporation also had ongoing discussions with its major group companies to understand their carbon and energy management strategies, including an awareness session held with third-party experts in the matter. Considerable efforts and progress were made by our major subsidiaries in the past year to strengthen their commitments on reducing GHG emissions and disclosing their climate change strategies.
Climate Advocacy and Outreach
In line with our contributions to community projects and initiatives that increase awareness and knowledge on climate change impacts and management, Power Corporation supports various organizations that are focused on issues related to climate change. The following provides examples of the research organizations we support:
Nature Conservancy of Canada – Power Corporation has been supporting Nature Conservancy of Canada since 2005. NCC seeks solutions to the twin crises of rapid biodiversity loss and climate change through large-scale, permanent land conservation. As a trusted partner, NCC works with people, communities, businesses and government to protect and care for the country’s most natural areas and the plants and animals that sustain them. Canada Life, one of Great-West Lifeco’s subsidiaries, also supports the NCC and its mission. In 2021 the company acted as National Sponsor of the Big Backyard BioBlitz series, helping offer Canadians nation-wide a meaningful way to contribute as citizen scientists. More than 6,600 participants from across Canada used the iNaturalist mobile app, visited their local green space and made more than 36,800 observations as possible.
Earth Rangers – Power Corporation provides funding for Earth Rangers, covering the three-year period from 2021 to 2024. Earth Rangers is a kids’ conservation organization whose free programs aim to instill environmental knowledge, positivity and the confidence to take action. The organization also works with a variety of national, regional and local conservation organizations to develop projects to protect endangered animals, ranging from conservation research to land acquisition and habitat stewardship. For its part, Canada Life continued its support for Earth Rangers’ membership program, which offers families free, fun and environmentally themed activities and content through their new Earth Rangers mobile app. The app features mission like Habitat Hero, which teaches users about animals’ habitat needs by participating in activities like making a butterfly feeder, digging a toad house and building a brush pile. Canada Life’s support helped Earth Rangers add more than 41,000 new members and more than 129,000 mission completed, which is a 50 per cent increase from last year.
The support we provide to these foundations is in line with our strategy to contribute to community projects and initiatives that increase awareness and knowledge on climate change. We also invest in companies that share our philosophy and values, supporting a wide array of causes, including organizations promoting environmental stewardship.
Carbon Disclosure
Power Corporation supports the CDP and its endeavours to increase transparency and disclosure on climate change governance, risks and opportunities, management and performance.
2022 marked the eleventh year our company responded to the CDP climate change questionnaire, for which Power received a score of A- (Leadership) from the CDP, the same score received by its publicly traded operating companies, Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert.
Our Objectives
Steps Taken to Achieve our Objectives
Explore Renewable Energy
Established Power Sustainable, one of our alternative asset investment platforms. It is a sustainability-led global alternative asset manager that aims to create long-term value by actively investing in entrepreneurial management teams, companies and projects with sustainable business models. Through its Power Sustainable Energy Infrastructure platform, it actively invests in the development, construction, financing and operation of renewable energy infrastructure assets across North America.
Minimize Investment Risks
Continue to integrate economic, environmental, social and governance factors into our investment process and active ownership approach, which includes climate change risks and opportunities, where relevant.
Invest in Sustainable Businesses
Companies in which we invest are adapting to the impacts of climate change on their businesses through products, services, markets and operations. We engage with our major subsidiaries through a group-wide Sustainability Committee on a range of sustainability initiatives, including GHG emission reduction and climate change related risks, opportunities and management strategies.
Engage with Trade Associations and Stakeholder Groups
We engage with trade associations on climate action as well as with non-profit groups that support various climate-related issues. Trade associations with which we engage, either through our Chairman of the Board or our President and CEO, include:
-
International Economic Forum of the Americas: in support of efforts to increase awareness and collaboration between international governments on a wide range of issues, including climate change.
-
Brookings International Advisory Council: in support of efforts to develop effective, pragmatic policies for addressing national and global issues, including energy and environmental issues.
-
C.D. Howe Institute: to collaborate with a distinguished group of Canadian business leaders, academics, former public officials and other experts in support of the development of strategic perspectives about emerging policy challenges, including climate change and the environment.
-
Business Council of Canada: to share expertise and support the development of unique insights, in-depth analysis and data-based policy recommendations across a broad range of economic, social and environmental issues, including climate change.
We are also proud of the actions of our group companies, many of which have become supporters and signatories of important third-party-led initiatives such as the Principles for Responsible Investment (PRI), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Climate Action 100+ initiative.
Climate Advocacy and Outreach
In line with our contributions to community projects and initiatives that increase awareness and knowledge on climate change impacts and management, Power Corporation supports various organizations that are focused on issues related to climate change. The following provides examples of the research organizations we support:
Nature Conservancy of Canada – Power Corporation has been supporting Nature Conservancy of Canada since 2005. NCC seeks solutions to the twin crises of rapid biodiversity loss and climate change through large-scale, permanent land conservation. As a trusted partner, NCC works with people, communities, businesses and government to protect and care for the country’s most natural areas and the plants and animals that sustain them. Canada Life, one of Great-West Lifeco’s subsidiaries, also supports the NCC and its mission. In 2021 the company acted as National Sponsor of the Big Backyard BioBlitz series, helping offer Canadians nation-wide a meaningful way to contribute as citizen scientists. More than 6,600 participants from across Canada used the iNaturalist mobile app, visited their local green space and made more than 36,800 observations as possible.
Earth Rangers – Power Corporation provides funding for Earth Rangers, covering the three-year period from 2021 to 2024. Earth Rangers is a kids’ conservation organization whose free programs aim to instill environmental knowledge, positivity and the confidence to take action. The organization also works with a variety of national, regional and local conservation organizations to develop projects to protect endangered animals, ranging from conservation research to land acquisition and habitat stewardship. For its part, Canada Life continued its support for Earth Rangers’ membership program, which offers families free, fun and environmentally themed activities and content through their new Earth Rangers mobile app. The app features mission like Habitat Hero, which teaches users about animals’ habitat needs by participating in activities like making a butterfly feeder, digging a toad house and building a brush pile. Canada Life’s support helped Earth Rangers add more than 41,000 new members and more than 129,000 mission completed, which is a 50 per cent increase from last year.
The support we provide to these foundations is in line with our strategy to contribute to community projects and initiatives that increase awareness and knowledge on climate change. We also invest in companies that share our philosophy and values, supporting a wide array of causes, including organizations promoting environmental stewardship.
Carbon Disclosure
Power Corporation supports the CDP and its endeavours to increase transparency and disclosure on climate change governance, risks and opportunities, management and performance.
2022 marked the eleventh year our company responded to the CDP climate change questionnaire, for which Power received a score of A- (Leadership) from the CDP, the same score received by its publicly traded operating companies, Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert.