January 21, 2021
TORONTO, ON – Building on over a decade of climate change efforts, Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced its commitment to achieve net-zero greenhouse gas emissions by 2050. This is a meaningful decision that advances Ontario Teachers’ mission to deliver retirement security for its members, while creating a positive impact for its partners and the communities where it operates.
“As a global pension plan, we will leverage our scale and influence to transition to a low-carbon economy and create a sustainable climate future,” said Jo Taylor, President and CEO. “With coordinated action net zero by 2050 is an ambitious but achievable goal. We are committed to playing our part alongside other organizations and governments around the world to effect significant, positive change.”
Climate change is one of the greatest challenges faced by society and businesses today. The effects of global warming, from rising sea levels and devastating floods to disrupted weather patterns and destructive storms, are clear and wide-ranging.
“While the transition to the low-carbon economy presents many challenges, it also presents many opportunities to earn the returns we need to pay our members’ pensions while more broadly benefiting society and the environment,” said Ziad Hindo, Chief Investment Officer.
Over the coming months, Ontario Teachers’ will hold itself accountable by establishing concrete targets for portfolio emissions and our investments in climate solutions and will report on its progress annually. Key elements of Ontario Teachers’ net-zero approach will include:
- Increasing investments in climate-friendly investments and solutions;
- Ensuring portfolio companies manage and report their emissions annually;
- Working with portfolio companies to achieve net zero emissions by 2050;
- Use the proceeds from our green bond offering to invest in climate friendly opportunities;
- Increasing the resiliency of our assets with physical risk assessments of our direct holdings; and
- Advocating for clear climate policies and partnering with global organizations to effect change.
“This is a long-term journey and the actions we take now will be a defining feature of the resiliency of our business and the value we create over time for our members, partners and communities where we operate and invest,” concluded Taylor.
- Ontario Teachers’ Climate Change Q&A (PDF)
- Ontario Teachers’ Green Bond Framework (PDF)
- 2019 Climate Change Report (PDF)
About Ontario Teachers’
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $204.7 billion in net assets (all figures at June 30, 2020 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.