OPTrust releases 2021 Responsible Investing Report,
A Collective Commitment
Report details 2021 achievements, progress on climate strategyPosted: June 14, 2022
TORONTO, June 14, 2022 – Today OPTrust released its annual Responsible Investing Report. The report, entitled A Collective Commitment, details OPTrust's 2021 responsible investing (RI) activities, including strengthening its environmental, social and governance (ESG) capabilities, advocating for improved sustainability and transparency in financial markets, and investing in climate solutions.
In 2021 OPTrust:
- Fully integrated the Responsible Investing Partner Evaluation (RIPE) to capture RI considerations in all new externally managed investments.
- Represented Canada as one of the signatories on the UN Principles for Responsible Investment's private equity working group.
- Established a new ESG data program to enhance tracking and understanding of RI performance across the total fund.
- Signed the 2021 Global Investor Statement to Governments on the Climate Crisis, supported by 733 investors managing over US$52 trillion in assets.
- Engaged 410 companies on key ESG issues and voted at 1,744 company meetings in 51 countries.
- Advanced work on climate strategy renewal for release in the fall of 2022.
"Our RI program was first established 15 years ago and has become integral to our ability to provide sustainable pension security for our members," said Peter Lindley, President and Chief Executive Officer at OPTrust. "As the world grapples with a highly complex transition to net zero, addressing plan sustainability requires addressing climate sustainability among other ESG concerns. Our ambition is to fully embed climate considerations into the way we do business across all functions."
In 2021, OPTrust formed a cross-organizational Climate Response Working Group (CRWG) to develop an enhanced, comprehensive strategy to address climate change. Work on the renewed strategy includes identifying climate risks and mitigation plans across asset classes, as well as conducting top-down climate scenario analysis to identify potential impacts on OPTrust's funded status.
"The CRWG's work will result in an actionable strategy with implementation already underway," said Alison Loat, Managing Director of Sustainable Investing and Innovation. “Our focus right now is laying the foundation, including building the systems, processes and data-sets that will guide our portfolio's path through a global transition toward alignment with net zero."
OPTrust's 2021 Responsible Investing Report can be found here. OPTrust has also released its reporting on progress against the Taskforce for Climate-related Financial Disclosure framework, which can be found here.
With net assets of over $25 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 100,000 members. OPTrust is a global investor in a broad range of asset classes including Canadian and foreign equities, fixed income, real estate, infrastructure and private markets, and has a team of highly experienced investment professionals located in Toronto, London and Sydney.
Director, Public Affairs