OPB recognizes the importance and urgency of addressing climate change and other environmental issues. We understand that we need to make significant and meaningful progress in this area and are committed to doing so.
We believe companies and investment managers that effectively address environmental, social and governance (ESG) issues are more likely to improve shareholder value over the longer term – which in turn helps pension plan members. A focus on ESG contributes to the sustainability of the Public Service Pension Plan (PSPP).
When investing the pension plan’s assets, environmental factors, including those related to climate change and the transition to a lower-carbon economy, are key considerations.
Investment Management Corporation of Ontario (IMCO) manages pension fund assets on behalf of OPB. IMCO considers material ESG factors when it manages our investments, including climate-related risks.
At OPB, we expect IMCO to not only integrate ESG considerations in the investment process, but also to influence investee companies through engagement and shareholder voting to improve corporate practices. We view proxy voting as an important tool to encourage companies and other enterprises to provide adequate disclosure to shareholders relating to ESG factors, policies and initiatives. IMCO, on OPB’s behalf, exercises voting rights for all securities owned directly or indirectly by OPB, in accordance with its Proxy Voting Guidelines.
We also expect IMCO to consider divesting from investments where insufficient action is taken to address material climate and environmental issues.
For detailed information on responsible investing at IMCO, please visit www.imcoinvest.com/investments/responsible-investing(opens in a new tab).
OPB and IMCO’s commitment to ESG and Climate Risk
On behalf of the Ontario Pension Board (OPB) and the Investment Management Corporation of Ontario (IMCO), we are pleased to present our response to your letter of September 29, 2021.Read More OPB and IMCO’s commitment to ESG and Climate Risk
Learn more about OPB's approach to climate change.Read More Climate