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.
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.
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.
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.
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: