Fonds de solidarité FTQ has decided to stop backing Québec oil and gas companies as part of an energy transition strategy intended to reduce the carbon footprint of its investments.
The strategy will include setting a reduction target for its private equity investments in 2019.
Additionally, the Fonds plans to assist Québec businesses with their transition and invest in alternative sources of energy.
The Montréal-based investor, which oversees $14.3 billion in net assets, decided last year to stop investing in coal use for energy production.
Fonds de solidarité FTQ Will Stop Investing in Québec Oil Exploration and Production
Under its just energy transition plan, the Fonds will reduce the carbon footprint of its public investments by at least 25% by 2025
QUÉBEC CITY, Sept. 29, 2018 /CNW Telbec/ – Gaétan Morin, President and Chief Executive Officer of the Fonds de solidarité FTQ, today announced new measures put in place by the institution to ensure a just energy transition for all. The announcement was made at the Annual General Meeting of Shareholders in Québec City.
“Transitioning to alternate sources of energy offers great potential for economic growth, but it can also create social injustice if it is not adequately planned. To be ‘just’, the transition must enable affected workers, communities and businesses to adapt to the new realities that these big changes will bring about. The Fonds is here to assist, invest and provide leadership and support Québec in this transition to a non-oil economy,” said Gaétan Morin, President and Chief Executive Officer of the Fonds de solidarité FTQ.
The Fonds’ plan for a just energy transition has four components:
Reduce the carbon footprint of its investments
Assist Québec businesses with the transition
Invest in a low-carbon economy
Take a leadership role in ensuring a just energy transition
More concretely, the Fonds is implementing the following measures, among others:
Exclude the Québec oil exploration and production sector from its portfolio
Create a voluntary offset program for Québec companies through its forestry subsidiary Solifor
Reduce, between now and 2025, the carbon footprint of its public investments by 25%
Set a reduction target for its private equity investments in 2019
Make the Fonds’ direct activities carbon neutral by May 2019
Adhere to the Montreal Carbon Pledge
It will be recalled that the first measure in the Fonds’ just energy transition plan was announced in September 2017, namely the discontinuation of investments involving coal use for energy production.
An information document concerning the Fonds’ just energy transition plan is available by clicking on this link (being translated, available only in French for the moment). Its 2018 Operations and Sustainability Report, made public during the AGM, is also available by clicking on this link.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2018, the organization had $14.3 billion in net assets, and through its current portfolio of investments has helped create and protect over 194,746 jobs. The Fonds is a partner in 2,839 companies and has 667,417 shareholder-savers.
For further information: for media representatives only: Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, Phone: 514 850-4835, Mobile: 514 703-5587, Email: firstname.lastname@example.org