Responsible Investing (RI) is an approach to investment that explicitly acknowledges the potential relevance of environmental, social and governance (ESG) factors to the sustainability of investment performance and to the health and stability of the market as a whole.
For OPTrust, the purpose of responsible investing lies in the recognition that ESG factors can impact investment risk and return. We seek to identify, assess and manage ESG factors in a manner that supports both our mission to deliver sustainable pension security and our fiduciary duty to our members.
The context for OPTrust’s responsible investing program is set out in three policies approved by the Board of Trustees; the Statement of Investment Policies and Procedures (SIP&P), Statement of Responsible Investing Principles (SRIP), and Proxy Voting Guidelines.
Responsible Investing Report
As part of our responsible investing program, OPTrust integrates material environmental, social and governance (ESG) factors into our investment decision-making processes and ownership practices. This approach reflects our fiduciary duty to the Plan’s members and is aligned with the Principles for Responsible Investment (PRI), to which the Plan is a signatory. Our investment teams seek to identify, assess and manage ESG risks and opportunities in a manner that supports both our mission and mandate, and are held accountable for doing so.
Our 2018 Responsible Investing Report details the Plan’s RI results and philosophy directing the integration of environmental, social and governance (ESG) factors into its investment strategy. The fund also shared the tangible progress made in measuring total fund exposure to climate risk during the first year of reporting on its climate action framework and year two reporting in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
- 2018 Responsible Investing Report (PDF - 3.0 MB)
Reports for Prior Years
- 2017 Responsible Investing Report (PDF - 3.0 MB)
- 2016 Responsible Investing Report (PDF - 1.0 MB)
- 2015 Responsible Investing Report (PDF - 1.9 MB)
Climate Change: Delivering on Disclosure
As a responsible steward of our members' capital, OPTrust has been working to expand our understanding and spark innovative thinking on the issue of climate change. Climate Change: Delivering on Disclosure details the fund's approach to navigating the complexities of climate change with respect to institutional investing and includes a call for collaboration in the development of standardized measures for carbon disclosure.
Climate-Savvy Project Report
The ALM/SAA project is one of the first efforts of its kind to integrate quantified physical and transition risks and opportunities associated with climate change into traditional multi-horizon, real-world scenario sets that drive strategic investment decision-making.
As a long-term investor, OPTrust believes that good governance practices support stronger long-term performance and enhance shareholder value. We actively exercise our voting rights for public securities held within our portfolios according to OPTrust’s Proxy Voting Guidelines. The Guidelines include our expectations for; the composition of the board, executive compensation, shareholder rights, and the disclosure of environmental and social information. In addition, our Statement on Proxy Access outlines our position on the importance of shareholder engagement on all governance issues including the director nomination process.
Please contact OPTrust at firstname.lastname@example.org with any questions or comments about the guidelines or for information on a specific vote.