Wellington Management Co. is joining the net zero asset managers’ initiative as a founding member.
The company is committing to working with clients on their decarbonization goals and setting an interim target for the proportion of assets to be managed in line with the attainment of net-zero emissions by 2050. Wellington is headquartered in Boston and has offices around the globe, including in Toronto.
The Ontario Teachers’ Pension Plan expanded its strategic relationship with Wellington to better integrate climate science research into its investments this spring. This latest step is a move towards ensuring long-term, risk-adjusted returns in line with the transition to lower-carbon economies, said a Wellington press release.
“This commitment is grounded in our belief — forged by extensive research — that climate change poses material risks for companies, economies and society and therefore, our clients’ investment portfolios.
“In collaboration with Woodwell Climate Research Center, a leading climate-science think tank, we have been researching the physical effects of climate change on capital markets and are integrating those findings into our investment practices. This work has strengthened our conviction that climate science can inform our stewardship approach and enhance the investment decisions we make on behalf of our clients.”