The report outlines a long-term plan to create a positive and lasting impact
Toronto (September 1, 2022): The Ontario Teachers’ Pension Plan Board today released its annual Climate Strategy and Responsible Investment Report. The report provides an overview of our corporate governance and responsible investment activities, and how we are leveraging our capital for real-world impact while delivering attractive investment returns to help deliver on the pension promise to plan members.
“We live during a period of rapid geopolitical, environmental and social change, while at the same time stakeholder expectations of companies are higher than ever. In this context, investing responsibly and with a clear sense of purpose has never been more important,” said Ziad Hindo, Chief Investment Officer. “While the integration of environmental, social and governance factors has long been central to our investment approach, we are increasingly looking for broader opportunities to use our capital and expertise to create lasting positive impact. We believe that our focus on investing to make a mark around the world will deliver better risk-adjusted returns over the long term.”
In the report, Ontario Teachers’ provides an overview of its multifaceted climate strategy, which includes helping our portfolio companies reduce their emissions, investing in green assets, helping large emitters decarbonize, issuing green bonds, understanding and mitigate physical and transition risks, and develop partnerships to amplify our efforts.
Highlights of the implementation of our climate strategy that are mentioned in the report include an update on how we invested or committed more than $5 billion in green or transition assets in 2021, progressed against our bold interim goals of net zero by reduce the emissions intensity of our portfolio by 32% in 2021 against its 2019 baseline, and our recently declared intention to selectively invest around $5 billion in high-emitting businesses (referred to as high-carbon transmission assets). ) with the express goal of helping them rapidly decarbonise.
“Our climate strategy is designed to drive real-world impact. We recognize the urgency of climate change and have a multifaceted strategy to reduce emissions in our investments and support the transition to a net-zero emissions future,” said Jo Taylor, President and CEO. “In addition to our broad climate strategy, we aim to allocate around $5 billion to high-carbon transition assets and use that capital to increase our impact on high-emitting businesses while delivering strong investment returns for our members. ”.
Other highlights from this year’s report include:
- More details on our progress against our interim emissions intensity reduction targets.
- How we apply our influence on private company boards to achieve our goal of having more than 30% representation of women in all board positions we control, one year ahead of our goal.
- How we use our voice to change, voting on approximately 300 shareholder proposals related to the environment, society or governance.
The actions we are taking today position us to continue providing retirement security for our members while shaping a better future for all. We look forward to sharing more about our journey towards a more sustainable and equitable future.
About Ontario Teachers
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global investor with net assets of $242.5 billion as of June 30, 2022. We invest in more than 50 countries in a wide range of assets including public and private equities, fixed income , credit, commodities, natural resources, infrastructure, real estate, and business growth to provide retirement income to 333,000 working and retired members.
With offices in Hong Kong, London, San Francisco, Singapore and Toronto, our more than 350 investment professionals bring a wealth of experience in sectors ranging from agriculture to artificial intelligence. We are a fully funded defined benefit pension plan and have achieved a total fund annual net return of 9.6% since the plan’s founding in 1990. At Ontario Teachers’, we don’t just invest to get a return, we invest to shape to a better future for the teachers we serve, the businesses we support, and the world we live in. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
Ontario Teachers Pension Plan
Phone: +1 416-419-1437
Email: [email protected]