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A RENEWED URGENCY
RESPONSIBLE INVESTING REPORT
2020
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MESSAGE FROM THE
PRESIDENT AND CEO
In December 2019, OPTrust realigned our responsible investing function by starting a new team dedicated to sustainable investing and innovation to build on our efforts to generate sustainable returns for members and the fund. We knew that responsible investing was growing in importance, but what we could not predict is how profoundly the world would change a year later. When COVID-19 hit, inequality and sustainability became top-of-mind for many people and the responsible investing efforts at OPTrust have taken on a renewed sense of urgency.
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“The pandemic has laid bare our vulnerability to natural factors, which in many ways is a wake-up call for investors that natural and human capital must be carefully managed and protected for long-term growth. As allocators of capital, we have a key part to play in the recovery and transition to a more sustainable future.”
James Davis
Chief Investment Officer
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IN 2020, OPTRUST VOTED AT 2,028
MEETINGS IN 52 COUNTRIES
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CLIMATE-FOCUSED INVESTING STRATEGY
In 2020, the newly-formed Sustainable Investing and Innovation (SII) team developed a climate-focused investment strategy – laying the groundwork for its first investment, which took place in Q1 2021.
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“The climate-focused investment strategy is thematic in its approach. We’re making the case that you can have a market-returning investment strategy that also adheres to principles and concepts that are important to our members, like being thoughtful about the world around us and that people are going to retire into.”
Alison Loat
Managing Director
Sustainable Investing and Innovation Group
James Kisil
Portfolio Manager
Sustainable Investing and Innovation Group
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RESPONSIBLE INVESTING JOURNEY
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“In the early months of the pandemic, we ramped up our board engagement to help impacted businesses create protocols to ensure the health and safety of their employees and customers, adapt their business models to continue operating safely where possible, create contingency plans, monitor liquidity, ensure supply chain resilience and undertake cost savings initiatives to offset any temporary revenue declines.”
Sandra Bosela
Co-Head of Private Markets Group
Managing Director and Global Head of Private Equity
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“Working with my colleagues to develop the RIPE framework, we built a comprehensive methodology that can be calibrated across our entire manager universe and diverse asset classes. The framework strengthens our partnerships with our external managers and allows us to effectively evaluate their responsible investing performance at the inception of an investment and over time.”
Zarqaa Shaikh
Associate Portfolio Manager
Multi-Strategy Investing
Capital Markets Group
RESPONSIBLE INVESTING
PARTNER EVALUATION (RIPE)
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REAL ESTATE GROUP
OPTrust’s real estate investments play a crucial role in creating long-term value and generating predictable income to fund our members’ pensions. Managed with a focus on environmental sustainability, our properties also positively impact the communities where they are situated.
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“We’re focused on the long term. It is crucial that we maintain strong relationships with our tenants so that we can continue to work together cooperatively going forward. Tenants will undoubtedly look favourably on landlords that helped them through tough times and that helps us retain current tenants and attract new ones going forward. This approach helps maintain our properties’ occupancy levels and sales and aligns with our focus on long-term value.”
Andy Alcock
Director
Real Estate Group
