Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate change
• diversity, equity, and inclusion (DEI)
• good governance

Environmental Achievements

• Committed to net-zero greenhouse gas emissions in portfolio by 2050 or sooner
• Completed first ever 100% acquisition with purchase of Pulse Clean Energy, a leading developer, owner, and operator of flexible generation projects in the UK.

Social Achievements

• Established a Diversity, Equity, and Inclusion Council in 2021
• Introduced voluntary DEI training in 2021, with over 30% of employees participating.
• Became a sponsor of Indspire, establishing two bursaries for Indigenous post-secondary students in finance.

Governance Achievements

• Created a new Board Investment Committee
• Completed the first phase of a multi-year initiative to become System and Organization Controls (SOC 1) certified.
• Published IMCO’s new Proxy Voting Guideline, raising expectations on board diversity, climate change risk, and sustainability governance.

Climate Goals & Targets

Environmental Challenges

• Ongoing challenges of remote working
• Supply chain bottlenecks plaguing the global economy – and contributing to rising inflation.
• The war in Ukraine and its impact on global peace and stability.

Mitigation Strategies

• Developed a hybrid work model focusing on results and personal accountability.
• Developed enhanced quarterly risk reports for clients and the Board; improved risk measurement and stress testing.
• Began a process to exit its small Russian positions; made no new purchases of Russian securities and took no positions in Belarus.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Investments to capitalize on the ongoing energy transition

Reporting Standards

Frameworks Used: TCFD

Certifications: SOC 1 Type I

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Governance
• Biodiversity

Environmental Achievements

• Achieved an estimated 44% reduction in our portfolio’s financed scope 1 and 2 greenhouse gas emission intensity from 2019 baseline, toward our target of 50% reduction in financed emission intensity by 2030
• Grew proportion of investments in climate solutions to 11.5% of portfolio, toward our 2030 target of deploying 20% of portfolio in climate solutions

Social Achievements

• Joined Ownership Works and committed to implementing broad-based employee ownership models at select portfolio companies
• Named a Greater Toronto Top Employer for 2024 by Canada’s Top 100 Employers
• Published first modern slavery report

Governance Achievements

• Updated its Sustainable Investing policy and strategy
• Supported 72% of environment-related shareholder proposals and 79% of social-related shareholder proposals at public company meetings
• Voted on more than 25,000 items at 2,000-plus public company meetings

Climate Goals & Targets

Environmental Challenges

• Scarcity of capital for the energy transition
• Challenges getting equipment on time and on budget given the accelerated investment in clean energy technologies
• Limited disclosure of scope 3 emissions

Mitigation Strategies

• Focus on managing our dollars efficiently and building businesses, rather than paying for things that are already built
• Identify bottlenecks well in advance, establish relationships with multiple suppliers, sign long-term supply contracts and standardize equipment design
• Engaging with our external managers and investee companies to collect directly reported scope 3 emissions

Supply Chain Management

Responsible Procurement

• Procurement and vendor risk management policies and processes
• Due diligence procedures
• Employee code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Fires
• Drought
• Flooding
• Extreme weather

Transition Risks

• Policy changes
• Legal changes
• Technological changes
• Market changes

Opportunities

• Investments in low-carbon products
• Energy efficiency
• Adaptation measures
• Cleaner energy sources

Reporting Standards

Frameworks Used: TCFD, SASB, ISSB

Certifications: LEED Platinum, WELL

Awards & Recognition

• Greater Toronto Top Employer for 2024