Sustainable Investing

• First sustainable energy investment

• Introduction of responsible investing principles

• Established Proxy Voting Guidelines

• Real Estate carbon reduction target established

• Oxford publishes first sustainability report

• Founding member of A4S

• 30% Club commitment

• Founding ILN Partner

• Board approved Sustainable Investing Framework

• SI Committee convened

• Dedicated VP of SI joins OMERS

• Endorsed TCFD and issued first TCFD report

• Launch of new SI website

• Maturing ESG integration processes

• Calculated first portfolio carbon footprint

• Established first Carbon Reduction Goal for 2025

• Announced Net Zero 2050 goal

• Conducted climate change scenario analysis

• Founding partner Climate Engagement Canada

• ESG Scorecards in place for all BUs

• Further TCFD Implementation

• Define 2030 reduction goal

• Explore climate physical risk assessment

Sustainable investing at OMERS involves the integration of environmental, social, and governance (ESG) considerations into investment decisions to achieve long-term performance. ESG factors can provide valuable insight on investment risk and opportunity and may have a material effect on investment performance over varying time horizons.

At OMERS, our core strategy is to deliver sustainable, affordable and meaningful pensions to our members. We believe that well-run organizations with sound ESG practices will perform better, particularly over the long term, and that investing in these companies is consistent with our fiduciary duty.

Our approach to sustainable investing involves incorporating an adaptive mindset, enabling us to dynamically manage risks and capitalize on opportunities in a constantly changing environment, employing the following principles:

Integration: of material ESG factors into our investment analysis, providing a holistic view of value and risk

Collaboration: with like-minded partners, to influence change and contribute to the health of global financial, economic, social and other systems that are critical to our future success

Engagement: of our members’ capital, engaging with companies to influence positive change, enhance value and drive tangible outcomes, in line with our long-term focus

Our Sustainable Investing Policy can be found here.

We believe that as the world transitions to a lower-carbon economy, there is a vital role for responsible, long-term investors such as OMERS to provide leadership on the cleaner and safer production and transportation of hydrocarbons. Today, we believe that traditional energy assets still form part of a balanced and diverse energy portfolio, and that to divest completely from traditional energy would mean that we lose our voice, and influence, in a very significant portion of the energy market. We use our influence as investors to help ensure that the traditional energy companies we have ownership positions in adopt a proactive approach to creating long-term, effective, relevant and transparent ESG strategies. While we prefer engagement to divesting, divestment may be an option when there exists a material misalignment with OMERS approach to sustainability and engagement has proven unsuccessful following an appropriate escalation process.

Any industry or sector exclusions are determined based on a set of criteria approved by our Executive Leadership Team that consider risks posed by ESG factors, as well as OMERS fiduciary duty.

We believe that investments in companies engaged in the following activities meet those criteria, and therefore do not meet our risk-return requirements:

• civilian firearms manufacturers;

• cluster munitions and anti-personnel landmines manufacturers; and

• tobacco producers and manufacturers.

As part of our Climate Action Plan, we prohibit direct investments in companies with material revenue from thermal coal.