Climate

OPB recognizes that climate change presents a major threat to long-term growth and prosperity, and that there is an urgent need to accelerate the transition towards an economy with net-zero greenhouse gas (GHG) emissions.

We recognize that a transition to a net-zero economy will involve a major transformation of sectors and industries. We encourage all companies and stakeholders to facilitate a just transition that does not leave workers or communities behind. We also support a transition to a net-zero economy informed by Indigenous perspectives, that supports Indigenous economic opportunities, and encourages business practices that align with the principles of the United Nations Declaration on the Rights of Indigenous Peoples.

As the Canadian Investor Statement also points out, the risks and impacts of climate change on specific markets, regions, communities, and investments are complex, dynamic, and uncertain. The value of financial assets could be impacted by the physical effects of climate change (known as physical risks) and by an adjustment toward a net-zero economy (known as transition risks). There will also be investment opportunities as the world transitions and develops climate solutions.

That is why large pension plans such as OPB and investment managers, including Investment Management Corporatin of Ontario (IMCO) (also a signatory to the Statement on Climate Change), support robust climate-related financial disclosures, emission reduction targets, and business activities aligned with a just transition and the ambition of net-zero by 2050 or sooner.

Action steps:

• IMCO has committed to achieving net-zero emissions by 2050 or sooner and has developed a robust Climate Strategy and Climate Action Plan to help it reach net-zero GHG emissions by 2050 or sooner.
• As part of this commitment, IMCO has set an interim target to reduce its portfolios carbon emissions intensity by 50 per cent by 2030 from a 2019 baseline.
• On behalf of its clients, including OPB, IMCO is currently completing its emissions baseline, which it expects to publish by mid-2022.
• IMCO has committed to implementing mandatory climate risk disclosure requirements aligned with the TCFD recommendations, ensuring comprehensive disclosures that are consistent and comparable.
• IMCO has signed onto the Paris Aligned Investment Initiative (PAII) and has committed to setting targets for reducing emissions and increasing investment in climate solutions, consistent with the 1.5°C temperature goal of the Paris Agreement.

Related resources

• Our Investment Policies
• Our Statement of Investment Policies & Procedures (PDF)
• OPB a founding signatory to the Canadian Investor Statement on Climate Change