Climate Change

The global path to net zero

The world economy is on a highly complex, multi-decade transition to one that produces fewer greenhouse gases to prevent dire consequences to our planet, industries and way of life.

To deliver on our mandate over the long term, OPTrust is committed to building a portfolio that addresses the risks and seizes the opportunities presented by climate change and the global transition to a net-zero economy.

OPTrust's approach

Climate Change Beliefs

Climate change is among the most complex, challenging issues of our time. To strive ahead through uncertainty, OPTrust is working across our organization to ensure we adapt and change as investment best practices, disclosure standards and expectations around climate change evolve in the decades ahead.

We have established five clear Climate Change Beliefs to guide our decision-making.

Addressing plan sustainability requires addressing climate sustainability.
A successful approach must anticipate change and evolve.
We will find opportunities across transition pathways, seizing opportunities to support transitions to capture value over the long term.
We are active owners and will engage with companies and participate in investor collaborations to address climate risk and opportunities.
We will be transparent about our approach and progress to preserve trust of our members and stakeholders.
Strategy

Our aim is to increasingly embed climate considerations into the way we do business across our entire organization. To do so, we've set four priority areas of focus.

Four priority areas of focus

As we continue to develop and advance our climate change strategy, OPTrust anticipates setting clear commitments, metrics and targets for our work. Examples of commitments already underway include:

  • Investment Strategy & Selection: We conducted a top-down climate scenario analysis to identify potential impacts on our funded status. Building on our existing investment strategies, including our renewable energy portfolio, green buildings, green bonds, low-carbon index strategy and our sustainability incubation strategy.
  • Asset Management: Our latest Proxy Voting Guidelines support greater management of climate risk and opportunity in our capital markets portfolios. Our corporate engagement and collaborative investor initiatives prioritize climate change.
  • Portfolio Analytics: We are integrating climate considerations into risk management frameworks and reporting. We have procured climate data services to enable more systematic tracking of climate considerations across asset classes.
  • Advocacy & Disclosure: We continue to enhance our internal and external disclosures in line with TCFD guidance. See our latest TCFD Report and our 2021 Responsible Investing Report.
Working together

The global path to net zero will present unprecedented challenges and opportunities, demanding investors work together to find solutions. We work collaboratively with many organizations, including: