Unlike Norway and Holland, there are no regulations in Canada to ensure that the Canada Pension Plan Investment Board (CPPIB) considers the risks due to climate change and global warming in making their investment decisions. The only influence the federal government has is through the appointment of Board members. Any changes to the CPPIB requires the consent of the federal government and seven of the provinces, a standard similar to amending the Constitution.
An international group of large institutional investors have become signatories to the United Nations’ Principles for Responsible Investment (UNPRI) organization. As signatories, these member institutions agree to follow a set of six voluntary and aspirational investment principles that offer a choice of possible actions for incorporating environmental, social, and governance (ESG) issues into investment practice, contributing to developing a more sustainable global financial system.
As part of their mission, in 2016 PRI published a document: “Sustainable real estate investment: Implementing the Paris Climate agreement–an action Framework.” The Framework sets out to identify key drivers and overcome the most common barriers to action for integrating ESG and climate change risks into real estate investments.
According to the Framework, investment buildings consume around 40% of the world’s energy and contribute up to 30% of its annual greenhouse gas (GHG) emissions.