Green bonds: Financing to accelerate the net-zero transition

As climate concerns mount, green bonds have emerged as a powerful tool to help finance the transition to a net-zero economy. At Ontario Teachers’, we’re focused on playing an active role in accelerating that transition. That’s why Ontario Teachers’ Finance Trust (a wholly owned subsidiary of Ontario Teachers’) has issued €1.25 billion ($1.8 billion) in green bonds to date, underscoring our commitment to shaping a better world while we continue to deliver retirement security for the teachers of Ontario. Proceeds from the green bonds are focused on assets that contribute to building a sustainable economy in some way.

What types of investments do we consider? Here’s just a sample. They include assets that enable the transition to a net-zero world, such as those that generate and/or distribute solar, wind and other forms of renewable power. We’re also eyeing investments that directly reduce net greenhouse gas emissions, such as technologies for monitoring energy consumption, and technologies to capture and/or store carbon. And we look at investments that promote sustainable agriculture and timber operations.

While the companies we invest in vary, the principles behind our approach to investing in green assets remain the same. We consider our impact on the world as part of every investment decision we make, and actively engage with the companies we invest in, so that we’re working towards a common goal of contributing to a sustainable future. We also aim to use our position as a global investor to help shape discussions and standards around climate investments and other ESG-related concerns. And we’re committed to evolving as new thinking emerges around sustainable investing.

OTFT’s green bond issuance is another example of how we’re investing to make a mark.

See a discussion about the role and use of green bonds in our latest Annual Responsible Investing and Climate Change Report.