Our approach
Our approach to sustainable investing is rooted in the belief that our effectiveness in managing sustainability-related risks and opportunities is an important driver of our long-term success and profitability.
We define sustainable investing as the practice of integrating and managing material sustainability-related risks and opportunities1 throughout the investment process. Doing this can support long-term value creation or value protection and contributes to higher overall risk-adjusted returns to help pay pensions.
Managing material sustainability factors is critical to financial performance. Our team is a central hub of expertise on sustainability-related risks and opportunities across asset classes and sectors. From due diligence onward, we work closely with investment teams and portfolio companies to ensure an informed approach that drives sustainable, long-term value creation.
Anna Murray
Senior Managing Director and Global Head of Sustainable Investing
Sustainable Investing Framework
As a global investor, we recognize the diverse contexts and regulatory environments in which our companies operate. The nature of our investments may vary significantly across asset classes and geographies. Our Framework aims to address a wide spectrum of sustainability-related risks and opportunities and is designed to enable the flexible application of relevant, best practices. It also lays out how we consider material sustainability-related risks and opportunities across the investment lifecycle.
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- At a total portfolio level, our strategic asset allocation process seeks to incorporate risks and opportunities related to systemic sustainability issues, such as climate change, where possible.
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- At the investment-level, this process involves due diligence, tailored to the investment’s nature, ownership stake and size of the investment as well as other transaction’s specifics.
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- Post-investment, we seek to engage with companies to promote transparency and proactive management of sustainability and climate-related risks and opportunities, especially where we have significant ownership and influence.
Sustainable investing news and insights
Instagrid: A portable battery system
Our portfolio company Instagrid, is a provider of an alternative to off-grid power solutions with its innovative portable battery systems. Learn about our active management approach, including how we collaborate with the European technology company to enhance operations and provide governance oversight as well as the dimensions we consider when undertaking an impact assessment.
Jasper Farms
Ontario Teachers’ worked with Jasper Farms, an avocado grower in Australia, and the Woodwell Climate Research Center to develop a detailed assessment of the future physical climate and biodiversity loss risks for Jasper Farms. This analysis identified that heat stress during flowering and fruit set poses a critical risk to avocado development. Analyzing how the likelihood of heat stress is expected to change in the coming decades supported Jasper Farms’ in evaluating the economic feasibility of various adaptation strategies, such as enhanced irrigation, cooling fans and pollinator conservation.
More news & insights about our sustainable investments
Feature reports
Learn more about our sustainable investing strategy, including how we integrate and manage material sustainable factors into our investments across asset classes and geographies and advances we've made on our climate strategy this past year.
Ontario Teachers’ Finance Trust (OTFT) issues green bonds to fund investments in eligible green assets. We define eligible green assets as investments in businesses that align with our Green Investment Principles and the International Capital Market Association (ICMA) Green Bond Principles.
Leveraging advocacy and partnerships
We use our influence as a global investor to create a supportive and sustainable business environment.
1 Sustainability-related risks and opportunities are often referred to as Environmental, Social and Governance (ESG) risks and opportunities. Environmental factors relate to a company’s interaction with the physical environment including both impacts on the environment (e.g., contamination or greenhouse gas emissions), as well as impacts from the environment (e.g., extreme weather, biodiversity loss or water scarcity). Social factors arise from the relationship between a company and its employees, consumers, suppliers, and communities. Social factors include, but are not limited to, labour and human rights, health and safety, diversity, equity and inclusion, and product safety. Governance factors, which relate to the system of structures a company puts in place to ensure it is effectively directed and controlled. For more information, please refer to our Sustainable Investing Guidelines.