OPTrust, Toronto, focused on climate change and diversity, and integrated a cross-portfolio responsible investing approach in its externally managed investments, according to its 2020 Responsible Investing Report released Tuesday.
OPTrust, which manages the assets of the C$23 billion ($18.7 billion) Ontario Public Service Employees Union Pension Plan, Toronto, is emphasizing capital allocation to opportunities at the intersection of sustainability and innovation, the report said.
"Environmental, social and governance issues create financial and reputational risks, but we also believe that solving these challenges presents significant investment opportunities," Alison Loat, managing director of sustainable investing and innovation, said in a news release accompanying the report.
On climate, OPTrust completed carbon risk assessments that measured the carbon footprint of its public equity, fixed income, private equity and infrastructure portfolios. On diversity and inclusion, the trust refreshed proxy voting guidelines to emphasize that commitment.
OPTrust earned a top rating from the Principles for Responsible Investment for its activities in 2020. Peter Lindley, OPTrust president and CEO, said the events of past year "have given a renewed sense of urgency to the importance of keeping long-term plan sustainability at the forefront of our investment decision-making and sustainable investing is a key part of that effort."
"Responsible investing is integral to our mission of paying pensions today and preserving pensions for tomorrow," Mr. Lindley said in the news release.