Ontario Teachers’ Pension Plan (OTPP), one of Canada’s largest investors, with over $269 billion in assets under management, announced the launch of its new 2026 – 2030 climate strategy, which will replace the fund’s portfolio emissions reduction targets with new goals to scale climate-related investments.
Launched in 2021, OTPP’s prior climate goals included targets to reduce portfolio emissions intensity by 45% by 2025, and by 67% by 2030. OTPP also announced an ambition in 2021 to achieve net zero greenhouse gas emissions by 2050. Alongside the launch of the new strategy, OTPP announced that it surpassed the 2025 goal, achieving a 50% reduction in the emissions intensity of its investment portfolio from a 2019 baseline
With the launch of the new 2026-2030 climate strategy, OTPP said that it will shift away from a focus on portfolio emissions intensity, and towards real-world impact, by prioritizing and measuring investments aligned with a net zero future.
Anna Murray, Senior Managing Director and Global Head of Sustainable Investing at OTPP said:
“Our climate strategy reflects an impactful and pragmatic evolution that builds on our progress and learnings to date and leans into our strengths as a private investor. Accelerating the global energy transition will require a significant role for private capital, and we are pleased to set out an ambition that can have a real-world impact through working with our companies to advance transition planning and directing capital toward attractive investments in sectors tangibly enabling the energy transition.”
According to OTPP, the new strategy will focus on two core pillars, including investing in climate solutions to deploy capital into companies that provide products, services or technologies that reduce or remove greenhouse gas emissions, help manage exposure to climate-related risk, or enable climate solutions, and; accelerating transition planning, by working with portfolio companies to develop and advance decarbonization plans that strengthen climate resilience and support long-term business value.
As part of the new strategy, OTPP announced a new target to have $70 billion in Climate Transition Aligned (CTA) private markets investments by 2030, roughly double its current level. The pension manager also released a CTA Framework, outlining criteria for CTA investments, which broadly include companies that are decarbonizing their operations, as well as those enabling the global energy transition.
OTPP added that it aims to have its portfolio primarily invested in assets aligned with its CTA Framework or in low emissions assets by 2050, as part of its commitment to “taking an active role in supporting the global goal to achieve net-zero emissions by 2050.”
Jo Taylor, President and CEO, said:
“Our climate strategy recognizes that the world’s shift to cleaner energy is underway and represents a generational investment opportunity that stands to reshape economies. By focusing our ambitions in private investing and active ownership where we have influence, we are positioning the Fund to remain resilient and constructively contribute to the transition through the companies in which we invest.”
