$30B
investments by 2030
OMERS Climate Action Plan
This is our foundation that guides our climate-related ambitions and our efforts to support the transition through real world decarbonization. Our approach is consistent with the approach outlined by the Net Zero Asset Owner Alliance. Our plan recognizes that climate change is one of the most pressing issues of our time, describes our strategies and actions on the pathways to net zero by 2050, and details our approach to managing climate risk and opportunities across our portfolio and asset classes. OMERS has also developed a purpose-built classification system (OMERS Climate Taxonomy) as a key tool to support the execution of the Climate Action Plan.
Our Approach in Action
Integration
As fiduciaries, we will take appropriate actions to understand and, to the extent possible, mitigate and/or price climate-related financial risks, as well as capture new investment opportunities. Such opportunities may include assets transitioning towards or aiding in the transition towards net zero. We incorporate climate change considerations into our investment guidance and decision-making and evaluate on a case-by-case basis where financial exposure to climate-related risks could be material.
Collaboration
Climate change impacts are both asset-specific and collective in nature, OMERS will continue to collaborate with other institutional investors, governments, regulators and other parties with a view to further understand climate change implications for markets and economies in which we invest.
Engagement
We believe that engaging with our investee companies where climate change presents material risks, and striving to improve overall reporting and transparency, will enhance our understanding of the financial risks posed by climate change on our portfolio.
Key Climate-Related Goals
20%
Portfolio emissions intensity reduction by 2025 relative to 2019
50%
Portfolio emissions intensity reduction by 2030 relative to 2019
Net Zero
By 2050
Interim
Goals every five years
Highest emitters
Top 20contributors expected to have a credible net zero plan in place by 2030
Please refer to OMERS Annual Report for our progress towards net zero, found here.
OMERS has committed to net-zeroand operational greenhouse gas emissions by 2050, as well as an interim goal of 50% carbon intensity reduction by 2030 relative to 2019.
We believe that climate change and the expected transition to a lower-carbon economy will affect many industries and sectors, presenting long-term risks and opportunities for the financial returns of our investment portfolio. Risks include those driven by physical and transition climate factors. Opportunities will arise through new types of investments, industries and technologies generated as a result of this transition and adaptation to changing climatic conditions.
Our climate-related disclosures are informed by the recommendations of the International Sustainability Standards Board (ISSB)’s Climate-related Disclosures standard (IFRS S2), and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD, now part of ISSB).
Addressing Climate Risk and Opportunity
It is our fiduciary duty to address financial risk and opportunities, including climate-related financial risks and opportunities, through our risk management, due diligence and asset management activities. To do so, we leverage the pillars of our Sustainable Investing approach: integration, collaboration, and engagement.
While the energy transition could significantly impact investments in the extraction and production of fossil fuels, the impacts could be much broader across many economic sectors and industries. Investments could face a number of climate-related risks and opportunities: advances in low-carbon technologies, intensifying climate-related policies, shifts in consumer preferences including reputational impacts, and the physical impacts of climate change. The potential impacts will range in varying degrees, across sectors, regions, timeframes, specific companies and assets.