Investment Management Corp. of Ontario, Toronto, plans to reduce the carbon emissions intensity in its portfolio by 50% by 2030 compared with 2019 baseline levels.
IMCO also seeks to have 20% of its portfolio invested in securities and projects focused on climate solutions by 2030, said a news release Monday.
IMCO said these interim targets are part of an effort to transition to global net-zero emissions by 2050 as called for by the Paris Agreement.
IMCO's Climate Action Plan, issued in conjunction with the news release, defined climate solutions as investments in companies or projects that "derive the majority of their business" from products or services that provide climate-change solutions, including such activities as clean technology, clean transportation, pollution prevention and emission control, sustainable water and wastewater management, among others.
As part of its overall commitment to fighting climate change, IMCO also said in the news release it will "prioritize partnerships with external managers that have existing or intended net-zero commitments," while increasing "investment in companies with net-zero commitments."
IMCO said it will also phase out new investment commitments in development of new unabated fossil fuel assets, and limit exposure to investments in thermal coal mining and arctic drilling.
In addition, the firm said it will "support its external managers and portfolio companies in establishing Paris-aligned plans and delivering portfolio emissions reduction, engage with its external managers and portfolio companies to increase the share of its portfolio reporting emissions data," and "exercise its right to vote at shareholder meetings, to encourage companies to manage climate-related risks and opportunities."
"We believe that the global transition to a net-zero economy will be one of the more powerful investment trends in the coming years. It will create material risks and opportunities for all investors, including our clients," said Bert Clark, president and CEO, in the release. "The targets we have set for 2030 reflect our pragmatic approach to helping our clients mitigate the risks and benefit from the opportunities associated with the transition to a low-carbon economy."
IMCO's assets under management totaled C$79 billion ($61.8 billion) as of Dec. 31, according to the most recent data available.
IMCO's net-zero goals follow similar plans by some of its peers in Canada. In February, Canada Pension Plan Investment Board, Toronto, committed to achieving net-zero greenhouse gas emissions by 2050 and also planned to reach carbon neutrality in its internal operations by end of fiscal year 2023.
As of Sept. 30, CPPIB's assets totaled C$529 billion.
Similarly, in April, Public Sector Pension Investment Board, Montreal, said as part of an effort to transition to global net-zero emissions by 2050 that it expected to cut its portfolio greenhouse gas emissions by 20% to 25% by 2026 — relative to a September 2021 baseline.
PSP had C$230.5 billion of assets under management as of March 31.
