The Ontario Teachers’ Pension Plan is aiming to increase its investments in private climate transition assets to $70 billion by 2030, as part of the investment organization’s new climate strategy.
These investments will be focused in companies that are decarbonizing their operations and those enabling the global energy transition, according to a press release, which noted the target represents a doubling of the investment organization’s holdings in these assets over the next five years.
Read: 85% of global asset owners recognize climate risk as a major concern: survey
The investment organization has achieved a roughly 50-per-cent reduction in emissions intensity from its 2019 baseline, meeting its 2025 target ahead of schedule, the release said. The new climate strategy will focus on real-world impact, prioritizing and measuring investments aligned with a net-zero future rather than emissions intensity. Decarbonization will continue to be a core focus of asset management, even as emissions intensity is no longer a primary metric.
By 2050, the Ontario Teachers’ aims to be primarily invested in climate transition and/or low emissions assets. “Our mission is to deliver retirement security for our members, and that includes effectively addressing material long-term opportunities and risks that come with climate change and the energy transition,” said Jo Taylor, president and chief executive officer at the Ontario Teachers’, in the release.
“Our climate strategy recognizes that the world’s shift to cleaner energy is underway and represents a generational investment opportunity that stands to reshape economies. By focusing our ambitions in private investing and active ownership where we have influence, we are positioning the fund to remain resilient and constructively contribute to the transition through the companies in which we invest.”
Read: Canadian businesses missing out on benefits of climate transition plans: expert