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Goldie Haider, President and CEO of the Canadian Business Council, met with John Graham, President and CEO of CPP Investments to discuss investing in Canada’s future:

John Graham has a clear mandate. As CEO of Canada Retirement Plan Investments, he oversees the retirement savings of 20 million Canadians with the goal of achieving maximum income without any extra risk.

And yet, in an unstable and unpredictable world, its easy to challenge.

Take, for example, fund investments in the energy sector. Recently CPP Investments is ready to reach a net zero portfolio of 2050. But that does not mean it’s owned by Canada’s oil and gas industry.

“We fundamentally believe in the path of engagement,” says Graham Goldie Hudder We are talking about business
Podcast. “Diverting removes the table from the responsible owners. Investing basically puts these assets in the hands of people who may not have the same values. ”

Graham says Canada is ready for an “economic transition” and not just an energy transition, as the transition to low-carbon sources will affect almost everything we produce and consume.

And he sees an important leadership role for Canada. “Canada knows how to make these kinds of initiatives on a large scale. I think we have a lot of resources and scientific and technical knowledge too. ”

Learn more – including why John Graham switched from a research scientist to a retirement manager – by listening to this exciting and wide-ranging episode. We are talking about business.

This is a wonderful discussion where they talk about:

  • ᲙClimate change
  • China
  • Office culture
  • ᲙIber protection
  • Chemistry (John’s first career)
  • Competition… and why the investment industry punishes complacency

“One of the things I love about the industry is that it ‘s competitive. If you stand still, you will fall behind. ” – John Graham, CPP Investments

Two things that wake John up at night:

  1. Competitiveness / Self-satisfaction (good advantage)
  2. Is the global economy any different than it was in the past?

He says the entire global economy is in transition and “it will require patient capital, partnership capital and large-scale capital, and that is what we have.”

According to him, “S” is ESG is very important. “It has to be a fair and just transition and it can not disproportionately tolerate a certain part of the population.”

He concluded with two great ideas:

  1. The energy transition solution is industrial in scale and requires the scientific and technical knowledge that Canada has.
  2. Growing geopolitical risks: “Some of the best minds want to come to Canada” and we can take advantage of this talent fund.

Agree, Canada is the perfect place to live, I just wish our politicians would pursue the right long-term policies to attract and retain talented individuals from all over the world.

I’m a little cynical about Canadian politics these days, but I will not go there.

John Graham has published a book by Bill Gates on How to Avoid a Climate Disaster.

Gates believes that nuclear energy will play a crucial role in combating climate change.

Late last year, Gates TerraPower announced it was building its first advanced nuclear reactor in a coal town in Wyoming.

The plant will cost about $ 4 billion, half coming from TerraPower and half from the United States government, the company said.

Rocky Mountain Power – a division of PacifiCorp owned by Berkshire Hathaway Energy – will run the plant, which will play a role in the energy company ‘s decarbonisation strategy.

Why do you share this?

Probably because I spoke to someone who is a nuclear energy expert earlier today and he told me that the federal government “has not included nuclear energy as part of clean energy that can qualify for the Green Bond program.”

I was stunned, utterly confused, which added to my cynical views on Canadian politics.

Let me explain something clearly, And these are my viewsClimate change is impossible without nuclear energy.

We only deceive ourselves if we think so.

ᲡWhat else? I recently discussed how the U.S. office segment meets the $ 1.1 trillion aging hurdle.

In this commentary, I quote another recent comment by John Graham as to why massive delays require collective effort, where he states: “Decarbonisation of Essential Sectors: Power, Real Estate
And agriculture is the basis of our economy, but they can also lead to high emissions. “

Very few people know that real estate has made the biggest contribution to climate change Over 40% of global emissions.

When you look at this figure, you realize how clever it was to appoint Deborah Orida as CPP Investments Sustainability Officer, given that she is the Chief Executive Officer and Global Head of Real Estate.

The sisters are a very smart woman, she knows what her mandate is in this new role and she has an excellent team to support her.

One thing CPP Investments does not believe in is blanket investing.

I have discussed this many times, but here are the critical points:

  • Switching to clean energy will not happen overnight, it will take decades
  • Investing in oil and gas puts the risk on funds or other companies that are not interested in making a responsible investment.
  • Investing is not free, it has a price, especially in an inflationary environment where all commodities gather.
  • Most importantly, engaging with these companies provides a smoother path as we move from carbon to carbon.

I understand? I am in favor of decarbonization, but we need nuclear energy and we still need fossil fuels as we move towards a clean energy future.

I do not know why, but sometimes I get these nasty emails from people who think I’re against clean energy.

On the contrary, I am in favor of solar, wind, hydro, atomic and other types of clean energy, but I am realistic and think that too many people naively think that we can change the switch and get renewable energy in nanoseconds.

Sorry, whether you like it or not, we still need oil, gas and coal to power our world, and if you do not want to freeze or starve to death in the winter, you have to admit that the transition economy will take decades and offer patient capital like CPP. Investments and many other opportunities and risks.

Finally, when it comes to risks, geopolitical risks are on everyone’s mind today.

John Graham talks about how the world is different after years of gathering.

Earlier, in a conversation with a friend of mine, he mentioned how global trade has “created interdependence” between nations that do not share the same values ​​and political systems.

We are now discussing all of this, and the world is likely to look much more fragmented over the next decade.

“My friend also thinks that large Canadian pensions need to invest more of their assets in Canadian companies to make them more competitive.”

Anyway, let me stop here and leave some food for you to think about.

First, take the time to listen to John Graham and Gold Haider below.

Second, an old TED report where Joe Lassiter explains why we need nuclear energy to tackle climate change.

Third, the brilliant discussion between Freddie Sayers and Samo Burja of Bismarck Analysis, which highlights sanctions and why the world order is becoming fragmented and more anarchic.

Finally, Judge Ketanji Brown Jackson wiped away tears when Senator Corey Booker, DN.J., delivered a passionate speech about how the first black woman nominated for the Supreme Court deserved her place.

What does this have to do with John Graham, CPP Investments and pensions?

Well, it reflects what it means to live in a fair and just society where everyone has the opportunity to rise to the highest level.

Judge Ketanji Brown Jackson is an incredible woman and we should all celebrate her confirmation in the United States Supreme Court.


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