Our approach
Our approach to sustainable investing is grounded in the view that effectively managing material sustainability-related risks and opportunities is an important driver of our long-term performance.
We define sustainable investing as the practice of integrating and managing material sustainability-related risks and opportunities¹ throughout the investment process. This approach can support long-term value creation or value protection and may contribute to more resilient, risk-adjusted returns over time, helping to pay pensions.
Sustainability is a core part of how we deliver long-term value. By working closely with management teams, we help companies navigate material risks and opportunities, including those created by a changing climate and the energy transition underway. This work requires pragmatism, innovation, & meaningful partnership. Our aim is to support our portfolio companies in building resilience and preparing for the future, while contributing to long-term value creation for our members.
Anna Murray
Senior Managing Director and Global Head of Sustainable Investing
Learn more about Anna’s perspective on our 2026-2030 Climate Strategy in this article.
Sustainable Investing Framework
As a global investor, we recognize the diverse contexts and regulatory environments in which our companies operate. The nature of our investments may vary significantly across asset classes and geographies. Our Framework aims to address a wide spectrum of sustainability-related risks and opportunities and is designed to enable the flexible application of relevant, best practices. It also lays out how we consider material sustainability-related risks and opportunities across the investment lifecycle.
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- At a total portfolio level, our strategic asset allocation process seeks to incorporate risks and opportunities related to systemic sustainability issues, such as climate change, where possible.
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- At the investment-level, this process involves due diligence, tailored to the investment’s nature, ownership stake and size of the investment as well as other transaction’s specifics.
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- Post-investment, we seek to engage with companies to promote transparency and proactive management of sustainability and climate-related risks and opportunities, especially where we have significant ownership and influence.
How climate fits into our approach
Climate change is a material systemic risk. As part of our overall approach, we consider climate-related risks and opportunities throughout the investment lifecycle and support companies in managing them. This includes contributing to our goal of reaching $70 billion in Climate Transition Aligned (CTA) private assets by 2030, encompassing investments in climate solutions and working with portfolio companies to advance credible transition planning.
Sustainable investing news and insights
Advancing Climate Action
As the direction of the energy transition becomes clearer—despite varying pace across regions and sectors—and the physical effects of climate change continue to shape business decisions and capital flows, Ontario Teachers’ reflects on its climate journey to date and outlines an updated, pragmatic climate strategy rooted in real-world impact.
Instagrid: A portable battery system
Our portfolio company Instagrid, is a provider of an alternative to off-grid power solutions with its innovative portable battery systems. Learn about our active management approach, including how we collaborate with the European technology company to enhance operations and provide governance oversight as well as the dimensions we consider when undertaking an impact assessment.
Jasper Farms
Ontario Teachers’ worked with Jasper Farms, an avocado grower in Australia, and the Woodwell Climate Research Center to develop a detailed assessment of the future physical climate and biodiversity loss risks for Jasper Farms. This analysis identified that heat stress during flowering and fruit set poses a critical risk to avocado development. Analyzing how the likelihood of heat stress is expected to change in the coming decades supported Jasper Farms’ in evaluating the economic feasibility of various adaptation strategies, such as enhanced irrigation, cooling fans and pollinator conservation.
More news & insights about our sustainable investments
Feature reports
Learn more about our sustainable investing strategy, including how we integrate and manage material sustainable factors into our investments across asset classes and geographies and advances we've made on our climate strategy this past year.
Ontario Teachers’ Finance Trust (OTFT) issues green bonds to fund investments in eligible green assets. We define eligible green assets as investments in businesses that align with our Green Investment Principles and the International Capital Market Association (ICMA) Green Bond Principles.
Leveraging advocacy and partnerships
We use our influence as a global investor to create a supportive and sustainable business environment.
1 Sustainability-related risks and opportunities are often referred to as Environmental, Social and Governance (ESG) risks and opportunities. Environmental factors relate to a company’s interaction with the physical environment including both impacts on the environment (e.g., contamination or greenhouse gas emissions), as well as impacts from the environment (e.g., extreme weather, biodiversity loss or water scarcity). Social factors arise from the relationship between a company and its employees, consumers, suppliers, and communities. Social factors include, but are not limited to, labour and human rights, health and safety, diversity, equity and inclusion, and product safety. Governance factors, which relate to the system of structures a company puts in place to ensure it is effectively directed and controlled. For more information, please refer to our Sustainable Investing Guidelines.