The Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers, has partnered with world-leading engineering and climate consultancy group WSP to conduct a detailed climate analysis of its Global Natural Resources ("NR") portfolio.
The analysis, which will be conducted alongside PSP Investments' local operating partners, covers more than 3 million hectares of farmland and timberland on more than 400 individual properties, across six countries. It will span a wide variety of crops including timber, tree nuts, vineyards, fruit, grain, cotton and animal protein.
Key objectives
The first objective of the analysis is to establish a portfolio-wide baseline of PSP Investments' NR greenhouse gas emissions (Scope 1 and 2) using farm-level data. This information will support the development and implementation of a decarbonization roadmap to reduce greenhouse gas emissions and establish science-based transition plans for portfolio companies.
The second objective will be to determine the sequestration capabilities of PSP Investments' NR assets in different carbon pools (e.g., biomass carbon and soil organic carbon). This work will leverage academic studies, third-party expert knowledge, and on-the-ground experience of local management teams, to develop robust methodologies and determine appropriate data sources to consistently quantify and report biogenic carbon dioxide removals and storage.
The WSP climate analysis will seamlessly integrate into PSP Investments' participation in a pilot program, the Farmland Management Standard, led by Leading Harvest, a non-profit organization focuses on sustainable agriculture. The Farmland Management Standard, a third-party assurance program, aims to standardize sustainability measurement and reporting across agriculture and food production.
Marc Drouin, Senior Managing Director and Global Head of Natural Resources at PSP Investments, said: "As a long-term investor and one of the leading global investors in agriculture and timber, we are highly committed to the continuous improvement of our sustainable farming practices around the world. Farmland and forestry assets carry significant potential to support global climate mitigation and adaptation efforts, including through their carbon sequestration potential. This ground-breaking project with WSP will give us the detailed, farm-by-farm information we need to help our platforms map out a path to global net-zero."
Mel de Jager, Vice President, Climate Change, Resilience & Sustainability at WSP, said: "For WSP, the opportunity to work with a global organization like PSP Investments, which operates across such a broad range of crops, timber species and geographies, is unique and exciting. Through this work, not only will we be able to help PSP Investments and its partners fully understand the footprint of their greenhouse gas emissions, but we will have a real opportunity to advance knowledge of carbon sequestration on agricultural lands".
Committed to sustainability
The analysis follows the launch of PSP Investments' inaugural Climate Strategy and builds on its longstanding commitment to reduce greenhouse gas emissions through best-in-class, sustainable farming and timber management practices.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investment managers with $230.5 billion of net assets under management as of March 31, 2022. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montreal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.
About WSP
As one of the world's leading professional services firms, WSP exists to future-proof our cities and environment. We provide strategic advisory, engineering, and design services to clients in the transportation, infrastructure, environment, building, power, energy, water, mining, and resources sectors. Our 55,000 trusted professionals are united by the common purpose of creating positive, long-lasting impacts on the communities we serve through a culture of innovation, integrity, and inclusion. Sustainability and science permeate our work. WSP derived about half of its $10.3B (CAD) 2021 revenues from clean sources. The Corporation's shares are listed on the Toronto Stock Exchange (TSX: WSP). To find out more, visit wsp.com/en-CA
Media Contacts: Maria Constantinescu, PSP Investments, Tel.: +1 (514) 218-3795, [email protected]; Andrew Macklin, WSP, Tel.: +1 (289) 835-2536, [email protected]
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