Addenda Capital announced May 19 the launch of two new investment funds that aim to support Canadian and international companies “that are taking the necessary steps to reduce their greenhouse gas (GHG) emissions in pursuit of a net-zero emissions society by 2050,” says the company.

The funds are the Addenda Climate Transition Canadian Equity Pooled Fund and the Addenda Climate Transition International Equity Pooled Fund. The funds seek to meet the needs of Canadian institutional investors and high net worth clients. 

"These funds are the result of an in-depth reflection among our teams who worked hard to define the true and tangible role that the financial sector must play in the transition," said Roger Beauchemin, President and Chief Executive Officer of Addenda Capital. "We view our approach as more constructive than divestment. We aim to support and encourage companies in their efforts to reduce GHGs in this massive shift that is necessary to transform the Canadian economy and our society for generations to come." 

Addenda’s strategy consists of investing in stocks of public companies that have mapped out their road to transition and engaging with them on a regular basis to encourage them in achieving their carbon objectives, says the company. The funds are actively managed by Addenda’s portfolio management teams. 

"In our view, sustainable investment is the pillar of long-term value creation for our clients," added Beauchemin. "The investment solutions that we offer are intimately linked to an approach we apply throughout our work: the integration of environmental, social and governance (ESG) factors in decision-making has been part of our process for a long time. As leaders in sustainable investing, we favour this strategy to generate compelling financial returns while making the right choices for generations of Canadians to come."