Ontario Teachers’ Continues to Advocate for Strong Climate Oversight in 2024 Proxy Voting Guidelines
Toronto, Ontario – January 18, 2024 – Ontario Teachers’ Pension Plan Board (Ontario Teachers’) has completed its annual review and updating of its Proxy Voting Guidelines (Guidelines). Ontario Teachers’ has a long-standing history of adopting leading corporate governance practices, acting as a responsible steward of its assets, and using its voice to drive change.
The 2024 Guidelines establish heightened expectations of Audit Committees, including climate literacy as a core competency for its members. Climate related impacts must be evaluated when reviewing budgets, performance, and M&A activity. Additionally, the Audit Committee should understand environmental and reporting related requirements for companies.
“This year we are emphasizing the role of the Audit Committee in managing climate change risks,” said Anna Murray, Senior Managing Director and Global Head of Sustainable Investing. “We believe their oversight will play an increasingly crucial role in helping companies navigate the challenges presented by climate change. Continually refreshing our Proxy Voting Guidelines is another way we’re using our voice and influence to drive positive change and create additional value in our investments.”
As part of the 2024 updates, the Guidelines also include measures aimed at long-term value creation and effective corporate governance, including:
- Greater Director Accountability: providing clarity on director accountability when director elections are staggered and/or when shareholder rights are weakened, or when their views are ignored under a dual class structure.
- Shareholder Proposals: to increase transparency, issuers should include shareholder proposals in their disclosure where and when possible.
Ontario Teachers’ annually reviews its proxy voting practices as well as new thinking in corporate governance, market developments, and other significant events to uncover emerging corporate governance trends and issues.
To read the full 2024 Guidelines, visit: Proxy Voting Guidelines
To view the Proxy Voting Database, which details how we vote our proxies at shareholder meetings, visit: Proxy Voting Database
About Ontario Teachers’
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $249.8 billion as at June 30, 2023. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 336,000 working members and pensioners.
With offices in Toronto, London, Hong Kong, Singapore, Mumbai, San Francisco, New York, Dallas, and São Paolo, our more than 400 investment professionals bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.4% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.
Media Contacts:
Ontario Teachers’
Dan Madge
+1 416 419-1437
media@otpp.com