Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion (DE&I)
• Governance

Environmental Achievements

• Reduced portfolio emissions intensity by 32% compared to the 2019 baseline.
• Invested or committed approximately $5B in green or transition assets in 2021.
• Achieved a 90% coverage of portfolio emissions with credible net-zero plans by 2050 for companies with significant stakes.

Social Achievements

• Achieved 30% representation of women across all board seats controlled one year ahead of target.
• Voted on ~300 environmental, social, and governance-related shareholder proposals.

Governance Achievements

• Continued to promote good governance practices through proxy voting, corporate engagements, and issues-based risk management.

Climate Goals & Targets

Environmental Challenges

• Portfolio carbon footprint may fluctuate due to economic factors and company operational changes.
• Many companies still do not report their carbon footprint, necessitating estimation.
• Different reporting timelines and data availability delays.

Mitigation Strategies

• Continued work towards real-world decarbonization and significant transparency on decarbonization efforts.
• Increased carbon emissions reporting to cover over 80% of emissions in the direct private portfolio.
• Established a two-year grace period for new investments without defined emissions reduction targets.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Investments in green assets and decarbonization of high-emitting businesses.

Reporting Standards

Frameworks Used: Partnership for Carbon Accounting Financials (PCAF), TCFD, SASB

Third-party Assurance: Deloitte (limited assurance)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Corporate Governance
• Responsible Investing

Environmental Achievements

• Decreased portfolio carbon emissions intensity by 32% since 2019; remained unchanged from 2021.
• Added $3 billion in new green assets.
• Set the intention to invest approximately $5B in High Carbon Transition assets.
• Issued a $1 billion green bond (OTFT's third, first in Canadian dollars).

Social Achievements

• Recognized as an EDGE Lead organization (highest certification for gender and intersectional equity).
• Launched a new partnership with the Indigenous Professional Association of Canada (IPAC).
• 93% of members were satisfied with service.

Governance Achievements

• Proxy voting guidelines advocate for 40% female representation on boards of large public companies.
• Voted on nearly 280 shareholder proposals on ESG topics.
• Board diversity: 55% of board members identify as women.

Climate Goals & Targets

Environmental Challenges

• Geopolitical conflicts, trade tensions, supply chain disruptions, rising inflation, and energy supply issues.
• Significant decline in both public equity and fixed income markets.
• Highest inflation in almost 40 years.

Mitigation Strategies

• Reduced exposures to fixed income assets in favor of inflation-protected assets.
• Increased investments in assets offering inflation protection (commodities, natural resources, infrastructure).
• Increased allocation to fixed income and real assets, especially core infrastructure.
• Expanded international footprint (Mumbai and San Francisco offices).

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Increasing engagement with suppliers on environmental and equity themes.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investments in green and transition assets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, Principles for Responsible Investment, Partnership for Carbon Accounting Financials (PCAF)

Certifications: EDGE Lead, EDGEplus

Third-party Assurance: Deloitte LLP (limited assurance for carbon footprint)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Investments in renewable energy and decarbonization initiatives.

Awards & Recognition

• EDGE Lead
• EDGEplus

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Employee Well-being

Environmental Achievements

• Decreased portfolio carbon emissions intensity by 39% since 2019 (toward 2025 interim target of 45%)
• Over $34B in green assets towards target of $50 billion

Social Achievements

• 1.2% annual improvement on representation of underrepresented groups
• Over $700K raised by employees for global causes
• 450+ employees contributed time via global Make a Mark Day volunteerism program
• 93% members satisfied with the service they receive

Governance Achievements

• Established an Enterprise Risk Committee of the board
• Enhanced market and credit risk measurements
• Evolved the Enterprise Risk Management framework

Climate Goals & Targets

Environmental Challenges

• Underperformance relative to benchmarks in 2023 due to lower allocation to high-performing public companies and valuation adjustments in infrastructure and real estate portfolios.
• Global conflicts, increasing geopolitical tensions, higher interest rates, economic disruption, supply chain issues and persistent inflation.

Mitigation Strategies

• Conservative portfolio positioning
• Increased focus on creating value within existing portfolio and providing capital for growth
• Diversifying portfolio across asset classes, geographies, and industries
• Establishing an in-house real estate team to improve returns
• Conditional inflation protection (CIP) to mitigate funding risks

Supply Chain Management

Responsible Procurement

• Incorporating environmental and equity considerations into sourcing practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investments in energy transition technologies

Reporting Standards

Frameworks Used: Partnership for Carbon Accounting Financials

Certifications: LEED, WELL

Third-party Assurance: Deloitte LLP