OPTRUST RELEASES ENHANCED CLIMATE CHANGE STRATEGY
The strategy includes an action plan to achieve a net zero portfolio by 2050
TORONTO, October 25, 2022 /PRNewswire/ — Today, OPTrust released its enhanced climate change strategy. The strategy outlines how OPTrust will manage the risks and opportunities of a transitioning economy and declares OPTrust’s ambition to align its portfolio with the global path to net-zero emissions by 2050.
“As the world grapples with the growing challenge of climate change, investing sustainably for the long-term health of our pension plan requires addressing climate sustainability,” said Peter Lindley, President and CEO at OPTrust. “Our climate change strategy commits to a net zero portfolio by 2050 and to laying the foundations that allow us to integrate climate considerations into the way we invest.”
OPTrust aims to achieve a net zero portfolio by 2050, based on the expectation that global progress and momentum will continue towards achieving net zero greenhouse gas emissions during this period. The enhanced strategy is based on four pillars designed to integrate climate considerations across OPTrust’s entire investment portfolio and operations: investment strategy and selection, asset management, portfolio analysis, and advocacy and disclosure.
Priorities for 2022-2023 include:
- Update climate scenarios and examine implications for OPTrust’s investment approach, including continuing to advance its pioneering research on the impact of climate on pension assets and liabilities.
- Collect baseline data on climate metrics for the OPTrust portfolio and establish a framework to set appropriate and relevant targets.
- Launched climate due diligence frameworks for use by investment teams across all asset classes.
- Implement stewardship plans to advance the transition of high-risk assets.
- Continue to join global peers in advocating for progress on climate policies.
- Continue to report on our progress, including through our Funding Status Report and Task Force on Climate-Related Financial Disclosure.
“Our climate change strategy sets out a clear ambition and approach to align our portfolio with the global path to net zero,” said James Davis, chief investment officer at OPTrust. “As a long-term investor, we aim to understand and mitigate emerging risks, including those related to climate change, as well as recognize and exploit the opportunities that come with the transition to a greener economy. With this climate change strategy in place, we will continue to focus on improving the resilience of our portfolio across all asset classes now and in the future.”
With net assets of over $25 billionOPTrust invests in and manages one of from Canada largest pension funds and administers the OPSEU pension plan (including OPTrust Select), a defined benefit plan with more than 100,000 members. OPTrust is a global investor in a wide range of asset classes, including Canadian and foreign equities, fixed income, real estate, infrastructure and private markets, and has a team of investment professionals. highly experienced investment located in Toronto, London and sydney.
MEDIA CONTACT: Claire PrashawOPTrust, Director, Public Affairs, 1-416-681-3617, [email protected]