The road to net zero is an urgent but long one. Hard-to-abate sectors will continue to play a necessary role in our global economy until lower emitting alternatives are more reliably available at scale and at an attractive cost. We intend to take an active role through our multifaceted climate strategy that focuses on investing in areas supportive of accelerating the transition.
This strategy is rooted in driving significant real-world impact, reflecting on our commitment to reduce the environmental impact of our portfolio and capitalize on opportunities supporting the broader transition to a low-carbon future.
Work with companies where we have significant ownership stakes and influence to support them on a decarbonization pathway in line with their own sustainability objectives and our net-zero ambition.
Transitioning high emitters to a low-carbon future is complex and will take time and capital, but it also creates opportunities. The decarbonization of the highest global emitters presents both an opportunity to make a real-world impact and generate strong returns given the premium that can be gained by shifting these companies towards a net-zero future.
Increase our capacity to deploy capital into companies that enable the net-zero transition, reduce GHG emissions and help build a sustainable economy while also helping us generate returns. In 2023, we increased our green investments by approximately $600 million, defined as companies that generate clean energy, reduce demand for fossil fuels and help build a sustainable economy. We now have over $34 billion in green assets, and are progressing towards our target of $50 billion. Meanwhile, we are building capabilities to better assess and capture transition opportunities across asset classes.
Engage on issues that help the broader economy shift toward net zero and collaborate with like-minded partners and investors.
We are a founding investment partner for one of the world’s largest funds dedicated to accelerating the transition to a net-zero economy.
We are an anchor investor funding entrepreneurs and businesses who are building climate-friendly solutions around the world.
We're working together to develop up to 9 GW of offshore wind worldwide, starting with a portfolio of 14 wind assets in the UK, Ireland, Japan, South Korea and Taiwan.
Issue green bonds to fund investments in eligible green assets with measurable impacts that support the transition to a sustainable future.
In 2023, Ontario Teachers’ wholly owned subsidiary, Ontario Teachers’ Finance Trust (OTFT), issued a $1 billion green bond with the proceeds being invested in companies or assets that enable the net-zero transition, reduce emissions, and build a sustainable economy.
We have set near-term targets to reduce our portfolio carbon emissions intensity against a 2019 baseline by:
45
by 2025
67
by 2030
% of our portfolio’s emissions we expect to be covered by a credible plan to achieve net zero by 2050:
67
by 2025
90
by 2030
Applicable to companies in which we have significant stakes.
In 2021, we made a commitment to achieve net-zero greenhouse gases by 2050. As part of this commitment, we will almost halve our emissions intensity by 2025. By 2030, we will cut our emissions intensity by two-thirds. It’s an ambitious plan – but one that helps us play an active role in decarbonizing the global economy.
We have worked with policymakers and regulators to encourage long-term climate policy.
