Investments
Responsible Investing
OPTrust's responsible investing (RI) strategy is integral to our mission of paying pensions today, preserving pensions for tomorrow.
Why responsible investing matters to us
We recognize that environmental, social and governance (ESG) factors can materially impact investment risk and return, as well as OPTrust's reputation. We strive to identify, assess and manage related concerns and opportunities throughout our investment process.
Long-term, sustainable economic growth necessitates responsible stewardship of natural resources, and firms embedding these considerations into their operations benefit from improved resource efficiency, adherence to regulatory requirements and shifting consumer preferences. Moreover, climate change is one of the most significant risks facing the world and its complexity requires innovative thinking to find solutions. As the world transitions to new energy sources and is impacted by extreme weather events, keeping environmental considerations at the forefront of investment decision-making is key to long-term success.
Long-term, sustainable economic growth necessitates responsible stewardship of natural resources, and firms embedding these considerations into their operations benefit from improved resource efficiency, adherence to regulatory requirements and shifting consumer preferences. Moreover, climate change is one of the most significant risks facing the world and its complexity requires innovative thinking to find solutions. As the world transitions to new energy sources and is impacted by extreme weather events, keeping environmental considerations at the forefront of investment decision-making is key to long-term success.
When workplaces lag on health and safety, labour or diversity practices, this can impact their reputation, performance and ability to attract and retain talent. We advocate for responsible treatment of human capital and communities, and are committed to supporting inclusion and equitable treatment of underrepresented groups within our organization, at our investee companies and in the broader business community.
When workplaces lag on health and safety, labour or diversity practices, this can impact their reputation, performance and ability to attract and retain talent. We advocate for responsible treatment of human capital and communities, and are committed to supporting inclusion and equitable treatment of underrepresented groups within our organization, at our investee companies and in the broader business community.
As a long-term investor, OPTrust believes that good governance practices contribute to 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 outline our expectations on topics such as board composition, executive compensation, shareholder rights and the disclosure of ESG information.
In our private markets investments we hold more substantial ownership stakes, granting us governance rights and board representation that allow us to play a more active role in asset management.
As a long-term investor, OPTrust believes that good governance practices contribute to 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 outline our expectations on topics such as board composition, executive compensation, shareholder rights and the disclosure of ESG information.
In our private markets investments we hold more substantial ownership stakes, granting us governance rights and board representation that allow us to play a more active role in asset management.
Our responsible investing journey
Responsible investing is a key component of our investing approach. Our journey began with a risk management lens, but we're now looking beyond just managing ESG risks to also find new opportunities at the intersection of sustainability and innovation.
Highlights include:
1997
OPTrust Trustees adopt first Proxy Voting Guidelines
2007
ESG integrated into Statement of Investment Policies and Procedures
2008
Two dedicated staff positions established to oversee ESG integration
2010
OPTrust becomes a signatory of UN Principles for Responsible Investment
2014
First annual Responsible Investing Report released
2016
Endorsed the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations
2017
OPTrust divests from tobacco firms
2020
Launch of new Sustainable Investing and Innovation team and our Sustainable Incubation Portfolio
2021
Instituted framework for evaluating responsible investing in externally managed investments
2022
Released our net-zero aligned climate change strategy and developed our ESG data program
2023
Released an update on our climate change strategy with metrics and targets to track and drive progress towards a more climate-resilient portfolio
2024
Developed ESG diligence toolkits for direct investments and reported reductions in our carbon footprint
1997
OPTrust Trustees adopt first Proxy Voting Guidelines
2007
ESG integrated into Statement of Investment Policies and Procedures
2008
Two dedicated staff positions established to oversee ESG integration
2010
OPTrust becomes a signatory of UN Principles for Responsible Investment
2014
First annual Responsible Investing Report released
2016
Endorsed the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations
2017
OPTrust divests from tobacco firms
2020
Launch of new Sustainable Investing and Innovation team and our Sustainable Incubation Portfolio
2021
Instituted framework for evaluating responsible investing in externally managed investments
2022
Released our net-zero aligned climate change strategy and developed our ESG data program
2023
Released an update on our climate change strategy with metrics and targets to track and drive progress towards a more climate-resilient portfolio
2024
Developed ESG diligence toolkits for direct investments and reported reductions in our carbon footprint
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.
Learn more about our climate change approach
Policies and publications
Our commitment to responsible investing is embedded in our governance and Board-approved policies and reflected in our reports and investor resources.
2024 Responsible Investing Report
As part of our commitment to transparency and disclosure, we are pleased to report on our responsible investing activities and advancements from the past year.
Working together
Advancing sustainability in capital markets demands investors work together to find solutions. We work collaboratively with many organizations, including:
