Will reduce portfolio carbon emissions intensity by 45% by 2025 and 67% by 2030
TORONTO, Sept. 16, 2021 /CNW/ - Ontario Teachers' Pension Plan Board (Ontario Teachers') today announced 2025 and 2030 interim targets to dramatically reduce greenhouse gas emissions as part of its journey to achieve net zero on its investment activities by 2050.
Ontario Teachers' has set industry-leading targets to reduce portfolio carbon emissions intensity by 45% by 2025 and two-thirds (67%) by 2030, compared to its 2019 baseline. These emission reduction targets cover all the Fund's real assets, private natural resources, equity and corporate credit holdings across public and private markets, including external managers.
"As an active, global investor, we play a critical role in helping accelerate the transition to a net-zero economy," said Jo Taylor, President and CEO. "Given the scale and complexity of our investment portfolio, we believe this is an ambitious plan that will meaningfully lower emissions and contribute to the plan's long-term sustainability."
Ontario Teachers' net-zero plan aims to actively reduce its portfolio carbon emissions, while concurrently contributing to building the net-zero economy. Key points include:
Significantly growing investments in companies that generate clean energy, reduce demand for fossil fuels and build a sustainable economy;
Pivoting asset class strategies increasingly towards green investments;
Actively investing in transition assets to secure future direct and tangible reductions in carbon emissions;
Setting portfolio companies on a clear path to implement Paris-aligned net-zero plans and meaningfully reduce emissions;
Issuing green bonds and investing the proceeds in climate solutions and sustainable companies;
Advocating for clear climate policies and partnering with other industry leaders to effect global change;
Reporting annually on progress against the 2025, 2030 and 2050 targets.
"Climate change permeates the entire investing landscape. Tackling it requires substantial effort and massive amounts of capital," said Ziad Hindo, Chief Investment Officer. "By significantly growing our portfolio of green investments and working collaboratively with our portfolio companies to transform their businesses, we can make a positive impact by encouraging an inclusive transition that benefits our people, communities and portfolio companies."
Ontario Teachers' has focused on climate change for over a decade. It has developed substantial climate-related expertise, invested significantly in climate-friendly opportunities and worked to make portfolio companies greener and more resilient. As at June 30, its portfolio includes more than C$30 billion in green investments such as renewable energy, energy storage, electrification, electricity transmission, energy efficiency and green real estate. In 2021, it has committed over C$5 billion to climate and transition solutions to date.
More details on the Ontario Teachers' climate journey and progress will be available in the upcoming 2020/21 Responsible Investing Report.
About Ontario Teachers'
Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
SOURCE Ontario Teachers' Pension Plan
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