The OPSEU Pension Trust has released a responsible investing report, highlighting a number of sustainability initiatives it has undertaken in the past year.
In 2019, the pension fund expanded its holdings in green bonds with an $100-million investment in Ontario government green bonds. It also received an A+ rating from the Principles for Responsible Investment on its strategy and governance approach to responsible investing.
Further, the plan formed a new sustainable investment and innovation team, which has been tasked with managing long-term sustainability issues through a capital allocation mandate. Its initial focus is opportunities arising from innovations relating to climate change.
“As a pension plan, we are long-term investors and our role is to look far ahead at challenges and opportunities that could affect our members’ retirement security across multiple generations,” said James Davis, chief investment officer of the OPTrust, in a press release. “The world is changing at an increasingly rapid pace, but our approach to responsible investing embraces that change and recognizes challenges also bring opportunities.”
In 2019, the OPTrust also made progress in measuring total fund exposure to climate risk. It worked with an external partner to conduct a bottom-up climate risk assessment on nearly the total fund and is beginning to measure and disclose portfolio emissions and establishing a baseline.
“We are focused on sustainability, of the plan and of the planet,” said Peter Lindley, the plan’s president and chief executive officer. “This is reflected in our commitment to overcome the unique challenges we face as long-term investors for the financial benefit of our members and society.”