Climate Change
Task Force on Climate-related Financial Disclosures
2024-25 Highlights
2024-25 Highlights
As a long-term investor, OPTrust remains steadfast in its commitment to addressing climate-related risks and opportunities in support of the long-term sustainability of the OPSEU Pension Plan, despite the constantly evolving regulatory and policy landscape for climate-related disclosures.
Over the past year we have advanced the implementation of our strategy by achieving key process and stewardship targets set for 2025 and measurably reducing the OPSEU Pension Plan Trust Fund’s (the Fund) carbon footprint.
As we look ahead, this is a moment to reflect on our progress and plan for the next phase of our climate journey. While the global path to net zero remains uncertain, our approach is to drive meaningful progress by balancing ambition with pragmatism, always guided by our fiduciary duty to Plan members.
Read the full reportStrategy
The global transition towards a net-zero economy presents significant investment risks and opportunities across asset classes and industries. Our climate strategy is built on four core pillars, designed to bring a whole-of-organization perspective to how we tackle climate risk and opportunity in the portfolio:
Investment strategy and selection
Asset management
Portfolio analytics
Advocacy and disclosure
By integrating insights from our teams in risk, finance, investments, portfolio strategy and other key functions, we ensure that climate considerations are embedded across all aspects of our investment decision-making. Key areas of progress include:
Bringing together diverse perspectives on climate risk
Refining our targets
Improving data quality
Advancing scenario analysis
Engaging with the industry
Staying nimble in our climate approach
Risk management
When it comes to climate change, OPTrust’s risk management approach involves actively assessing how energy transition dynamics, innovation and policy shifts can create both value and risk. We view opportunity recognition as an essential component of prudent, forward-looking fiduciary oversight and risk management.
We have developed a suite of tools designed to better assess and monitor climate-related exposures across both public and private markets. And we continue to strengthen our approach to climate management by deepening our understanding of physical risks and potential mitigants and integrating diverse risk perspectives into more centralized reporting.
Metrics and targets
Climate metrics and targets are important tools for investors to measure and manage climate-related risks and opportunities in portfolios. In 2023, we developed a bespoke metrics framework to systematically track a range of climate considerations across the Fund, including our carbon footprint. While carbon footprint remains the industry’s primary and most standardized measure of climate transition risk, we recognize that it does not capture the full complexity of climate risk exposure and associated management.
OPTrust’s net-zero portfolio journey
In our new climate change strategy, we set our foundational ambition to achieve a net-zero emissions portfolio by 2050.
In our new climate change strategy, we set our foundational ambition to achieve a net-zero emissions portfolio by 2050.
To begin tracking our progress towards net zero, we completed our first cross-Fund carbon footprint on our end-of-year 2022 portfolio.
We also set an interim emissions intensity reduction target of 30% by 2030, along with supporting stewardship and process targets for 2025.
To begin tracking our progress towards net zero, we completed our first cross-Fund carbon footprint on our end-of-year 2022 portfolio.
We also set an interim emissions intensity reduction target of 30% by 2030, along with supporting stewardship and process targets for 2025.
We conducted our second carbon footprint, with improved data quality and greater coverage of our assets.
Our footprinting methodology and data also underwent third-party review by PwC, consistent with industry practice.
We conducted our second carbon footprint, with improved data quality and greater coverage of our assets.
Our footprinting methodology and data also underwent third-party review by PwC, consistent with industry practice.
We repeated the carbon footprinting on our end-of-year 2024 portfolio to measure the continued progress against our 2023 baseline and towards our 2030 target.
We achieved our 2025 stewardship and process targets, advancing our portfolio data quality and asset stewardship.
We repeated the carbon footprinting on our end-of-year 2024 portfolio to measure the continued progress against our 2023 baseline and towards our 2030 target.
We achieved our 2025 stewardship and process targets, advancing our portfolio data quality and asset stewardship.
Looking ahead
As the global economy’s journey to net zero continues to evolve, we remain steadfast in our commitment to transparency, effective risk management and continued attention to the impacts of climate change. Over the past year, we have made meaningful progress in implementing our climate change strategy, expanding our carbon footprinting coverage, strengthening our tools and analytics, and advancing our stewardship and process targets. We look forward to sharing further updates as we continue to build a resilient, sustainable portfolio for the long term.
Get the whole story
Check out our 2024-25 Task Force on Climate-related Financial Disclosures for a complete look at our progress to date.
Read the full reportLearn more about our climate change approach