Potentially Significant Risks to Our Portfolio
Climate change poses potentially significant risks to the financial returns of our portfolio, and therefore, to the pensions we safeguard.
Climate change risks have global impacts that affect multiple sectors and companies. On the other hand, climate change will also present new investment opportunities, such as innovative technologies.
Ontario Teachers' Approach to Climate Change
We have adopted a four-pillar approach to climate change. Click on each one to learn more.
Our fiduciary duty to pay pensions
We have an obligation to help the pension plan pay members' pensions today, tomorrow and 30 years from now. We are legally bound to be diligent in our investing process, which means carefully assessing risks including climate change and weighing them against potential returns.
Our responsibility to manage investment risks
We consider climate change impacts alongside other risks when evaluating the risk-return tradeoff of an investment. Climate change can hurt financial returns through severe physical risks to business, such as extreme weather, as well as through regulatory risks and uncertainty.
Our engagement with companies and policy makers
We use our influence to educate and engage with companies and governments. With a seat at the table we can emphasize to companies the importance of managing climate change risks and developing solutions, and encourage governments to clarify policies, which in turn spurs investment in innovation and solutions.
Our search for climate-friendly investment opportunities
We have invested in clean energy and innovative technologies such as carbon capture and storage. We have investments in BluEarth Renewables and Cubico Sustainable Investments. We can use our investment expertise to back companies that deliver long-term solutions and long-term returns.
Our actions are driven by our key strengths: using influence where we can be effective, and making sound investment decisions.
We have spent time considering many of the key portfolio risks related to climate change.
Download a copy of our analysis, Separating the Real Risks for Investors from the Noise