Power Corporation of Canada | Disclose full scope 1-3 financed emissions

AGM passed
AGM date
Previous AGM date
Proposal number
Resolution details
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Company sector
Company HQ country
Resolved clause
Resolved: Shareholders request that Power Corporation annually disclose its full scope 1-3 financed emissions using accepted standards and in absolute terms.
Supporting statement
Financed emissions are the key indicator of transition risk exposure within a portfolio. The Science Based Targets initiative notes that “Absolute GHG emissions measurements are a proxy to gauge a [financial institution’s] exposure now and in the future to climate-related transition risks within its portfolios.”

Power Corporation is uniquely exposed to transition risk given that it is estimated to have the third largest holdings of fossil fuel assets in Canada.

In its most recent CDP response, Power Corporation only disclosed financed emissions from its subsidiary GreatWest Lifeco. And, Lifeco’s disclosure covered only 20% of its AUM, meaning that Power Corporation disclosed financed emissions on only 16.4% of its total AUM. Despite its subsidiary IGM measuring and disclosing financed emissions on 94% of its public equity holdings, Power Corporation did not include those emissions in its reporting.

In every CDP response since 2016, Power Corporation has said that it intends to set science-based interim emissions reduction targets across a number of facets of its business, but is yet to follow through. We note that it is not possible to set comprehensive emissions reduction targets without first establishing proper measurement of baseline emissions, as this resolution calls for.

Power Corporation subsidiaries have been making some progress on climate. Power Sustainable invests in sustainable infrastructure and offers financed emissions disclosures. IGM subsidiary Mackenzie Investments has set interim financed emissions targets. However, sporadic progress at the subsidiary level does not replace the need for Power Corporation to follow through with an overall systematic approach to climate, starting with the full disclosure of its financed emissions.

We also note that Power Corporation may presently lack the necessary capacity and governance to properly measure and disclose financed emissions and to engage in target setting and decarbonization activities given that it lacks a senior officer assigned to climate or more broadly to sustainability.

In terms of financed emissions accounting, Power Corporation is falling behind others. Canada’s banks have comprehensive financed emissions accounting, and even peer holding companies are ahead. Swedish holding company Industrivärden, has been reporting the emissions stemming from its equities portfolio since 2010, and now reports scope 3 financed emissions from its holdings annually, using an equity share approach. NatWest Group, a British holding company, annually discloses its portfolio emissions.

https://sciencebasedtargets.org/resources/files/SBTi-TCFD-reporting-guidance.pdf (p. 20);
https://www.powercorporationcsr.com/media/uploads/pdf/sidebar/power-corporation-cdp-2016.pdf (p. 20); https://www.powercorporationcsr.com/media/uploads/reports/Power_Financial_CDP_2017.PDF (p. 19); https://www.powercorporationcsr.com/media/uploads/pdf/sidebar/power-corporation-cdp-2018_H3N8kil.pdf (p. 36); https://www.powercorporationcsr.com/media/uploads/reports/power-corporation-2019-cdp-final.pdf (p. 36); https://www.powercorporationcsr.com/media/uploads/reports/pcc-2020-cdp-response-final-web_GACyRJ4.pdf (p. 47); https://www.powercorporationcsr.com/media/uploads/reports/pcc-2021-cdp-response-final-web.pdf (p. 65); https://www.powercorporation.com/media/uploads/esg_hub/bpcc_2022_cdp_submission_final_fsY1817.pdf (p. 26); https://www.powercorporation.com/media/uploads/esg_hub/bpcc_cdp_climate_change_questionnaire_2023_-web.pdf (p. 114)
https://www.igmfinancial.com/content/dam/igm/en/corpresp/assets/docs/carbon-disclosure-2023-e.pdf (p. 35)
https://www.industrivarden.se/globalassets/hallbarhetsrapporter/engelska/sustainability--report-2022.pdf (p. 86)
https://investors.natwestgroup.com/~/media/Files/R/RBS-IR-V2/results-center/17022023/nwg-2022-climate-related-disclosure-report.pdf (p. 27)

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
KBI Global Investors For We, as shareholders, would benefit from an annual corporate level financed emissions disclosure and plans to mitigate related risks.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.