Engage, Don’t Divest: The New ESG Playbook According to La Caisse

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As the debate intensifies over how best to align capital with climate goals, La Caisse de dépôt et placement du Québec (La Caisse) is charting a different course—one that favors transformation over abandonment. In its newly unveiled 2025–2030 climate strategy, the global investment group commits to accelerating the low-carbon transition not by divesting from high-emitting industries, but by investing in their evolution.

With a $400 billion target for climate action investments by 2030, La Caisse is putting its weight behind both proven climate solutions and companies that demonstrate a serious commitment to change. The focus shifts from reducing portfolio emissions alone to advancing decarbonization within the real economy.

“We are demonstrating even greater ambition by going beyond calculating our portfolio’s carbon emissions to work even harder on transitioning the real economy,” said Charles Emond, President and CEO of La Caisse.

To guide this approach, La Caisse has introduced a three-tier system to assess the climate maturity of companies:

  • Committed: Firms with credible, early-stage decarbonization plans
  • Aligned: Companies on track with science-based targets or sector benchmarks
  • Fully Aligned: Leaders with verified pathways and measurable emissions reductions

The strategy challenges a long-held ESG assumption: that climate responsibility means avoiding polluting sectors altogether. Instead, La Caisse intends to drive decarbonization from within—supporting firms that are willing to adapt, rather than excluding them outright.

This shift is backed by robust global frameworks, including the Climate Bonds Initiative (CBI), Science Based Targets initiative (SBTi), and Net-Zero Asset Owner Alliance (NZAOA). It also introduces stronger internal accountability: climate performance metrics will now influence team compensation.

The strategy’s twofold investment lens includes capital for climate-forward technologies—like renewables, low-emission transport, and adaptation infrastructure—and financial support for companies developing sector-specific decarbonization plans. This dual approach reflects a broader evolution in ESG investing: from static screens to dynamic transition alignment.

“Investing in decarbonization is an effective way to protect and even create value,” noted Bertrand Millot, Head of Sustainability at La Caisse.

Rather than opting for simplified optics, La Caisse is prioritizing influence. It sees engagement as the most powerful tool in an investor’s climate arsenal—one that can shape behavior, redirect capital, and move markets toward meaningful change.

Environment + Energy Leader