Climate change
As one of the greatest and most pressing sustainability issues of our time is climate change, we recognize our responsibility – as a long-term active shareholder, employer, and contributor to the communities in which we are established − 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:
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Reducing our energy and carbon footprint
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Increasing the use of renewable resources
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Preventing, reducing and diverting waste from landfills
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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 in our buildings, our energy and carbon efficiency strategy is mainly focused on reducing the energy consumption from our office buildings. We engage with our wholly owned 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 leading franchises, Great-West Lifeco, IGM Financial, GBL, Sagard and Power Sustainable, regarding climate. 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 regarding the energy and carbon management strategies they establish and implement.
Climate change awareness building
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:
Concordia University – Green Tech Fund – In early 2024, Power Corporation provided its support to Concordia University’s new world-leading research program called Volt-Age, dedicated to integrating cutting-edge technologies for carbon-neutral buildings, advanced energy storage and smart grids, as well as the electrification of transportation in municipalities and communities across Canada. This visionary initiative positions Concordia as an international leader in green-tech innovation.
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.
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.
The year 2024 marks the thirteenth year we respond to the CDP climate change questionnaire. In 2023, Power Corporation received a score of A- (Leadership) from the CDP, ranking it in the top quartile of financial services companies globally. GBL and Great-West Lifeco also received a score of A-, while IGM Financial received a B score.
Our objectives
Steps taken to achieve our objectives
Explore renewable energy
Established Power Sustainable, one of our alternative asset management businesses, a climate-focused investment manager which offers institutional investors exposure to alternative assets which aim to accelerate and scale sustainable solutions across multiple industries. 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. These include:
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Potentia Renewables – a renewable energy generation company that is a fully integrated developer, operator and manager of solar and wind energy assets, active in North America.
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Nautilus Solar – a U.S.-based company that acquires, develops, finances and manages distributed solar projects across community, municipal/utility-scale, commercial and industrial markets.
In 2023, Power Sustainable launched Power Sustainable Infrastructure Credit (PSIC), which provides capital solutions to projects and companies demonstrating positive underlying sustainability characteristics. Notably, PSIC supports initiatives focused on accelerating the transition to a low-carbon economy and the creation of affordable clean energy by providing finance to projects which contribute to the stabilization of GHG concentration, decarbonization, or the increase of GHG sequestration (i.e. GHG removal).
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.
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 and non-for-profit groups with which we engage, either through our Chairman of the Board or our President and CEO, include:
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Brookings International Advisory Council: in support of efforts to develop effective, pragmatic policies for addressing national and global issues, including energy and climate issues.
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C. D. Howe Institute: to collaborate with a distinguished group of Canadian business leaders, academics, former policymakers and subject-matter experts in support of the development of strategic perspectives about economically sound policy challenges, including climate change and the environment.
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Business Council of Canada: to share expertise and support the development of unique insights, in-depth analysis and data-driven policy recommendations across a broad range of economic, social and environmental issues, including climate change and clean growth.
Climate change awareness building
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:
Concordia University – Green Tech Fund – In early 2024, Power Corporation provided its support to Concordia University’s new world-leading research program called Volt-Age, dedicated to integrating cutting-edge technologies for carbon-neutral buildings, advanced energy storage and smart grids, as well as the electrification of transportation in municipalities and communities across Canada. This visionary initiative positions Concordia as an international leader in green-tech innovation.
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.
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.
The year 2024 marks the thirteenth year we respond to the CDP climate change questionnaire. In 2023, Power Corporation received a score of A- (Leadership) from the CDP, ranking it in the top quartile of financial services companies globally. GBL and Great-West Lifeco also received a score of A-, while IGM Financial received a B score.