Strategy includes action plan to achieve net-zero portfolio by 2050
Today OPTrust released its enhanced climate change strategy. The strategy outlines how OPTrust will manage risks and opportunities from a transitioning economy and declares OPTrust’s ambition to align its portfolio with the global path towards net-zero emissions by 2050.
“As the world grapples with the growing challenge of climate change, investing sustainably for the long-term health of our pension plan demands addressing climate sustainability,” said Peter Lindley, President and Chief Executive Officer at OPTrust. “Our climate change strategy commits to a net-zero portfolio by 2050 and to building the foundation that enables us to embed climate considerations into the way we invest.”
OPTrust aims to achieve a net-zero portfolio by 2050, based on the expectation that global progress and momentum continues towards achieving net-zero greenhouse gas emissions over that timeframe. The enhanced strategy is built on four pillars designed to integrate climate considerations across OPTrust’s investment portfolio and operations: investment strategy and selection, asset management, portfolio analytics, and advocacy and disclosure.
2022-23 priorities include:
- Updating climate scenarios and examining implications to OPTrust’s investment approach, including continuing to advance its pioneering research into the impact of climate on pension assets and liabilities.
- Collecting baseline data on climate metrics for OPTrust’s portfolio and establishing a framework to set appropriate, relevant targets.
- Launching climate due diligence frameworks for use by investment teams across all asset classes.
- Implementing stewardship plans to advance the transition of high-risk assets.
- Continuing to join global peers in advocating for progress on climate policies.
- Continuing to report on our progress, including through our annual Funded Status Report and Taskforce for Climate-related Financial Disclosures.
“Our climate change strategy outlines a clear ambition and approach to align our portfolio with the global path to net zero,” said James Davis, Chief Investment Officer at OPTrust. “As a long-term investor, we aim to understand and mitigate emerging risks, including from climate change, as well as recognize and harness opportunities that come along with the transition to a greener economy. With this climate change strategy in place, we will continue to focus on enhancing our portfolio’s resiliency across asset classes now and into the future.”