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Committed to net-zero portfolio emissions by 2040 or sooner
With interim carbon footprint reduction targets from a 2021 baseline (tCO2-eq/$M invested):
16.5% by 2025 and 60% by 2030
Our Climate Action Plan outlines the steps and tools we will take to achieve our net-zero target and manage climate-related investment risks and opportunities.
Climate Action Plan Progress Highlights
Reducing our portfolio carbon footprint
We annually calculate and report our portfolio carbon footprint, which is an analysis of the emissions associated with our investments. Our portfolio carbon footprint decreased by 14% in 2023, driven primarily by a reduction in emissions intensity within many of our asset subclasses, particularly in public equity, and a reduced exposure to corporate fixed income. As a result, we achieved a total 17% reduction against our 2021 baseline, exceeding our 2025 interim target. We will continue to strive for further reductions toward our next threshold: achieving a 60% reduction by 2030 against our 2021 baseline. Read more about our Climate Action Plan progress in our 2023 annual report.
UPP’S 2023 carbon footprint and targets
Metric tonnes CO2-eq/$M invested
UPP’s Climate Transition Investment Framework
UPP’s Climate Transition Investment Framework is an essential foundation to our net-zero strategy that will enable us to systematically evaluate the transition alignment and readiness of our current portfolio and new investment opportunities.
Engaging companies to drive credible climate plans and disclosures
Our Climate Stewardship Plan sets out how we will engage with portfolio companies and market actors to encourage the net-zero transition and sufficient climate-related disclosure. It features targeted and measurable strategies for UPP’s engagement and advocacy efforts, as well as a time-bound action plan to strengthen our proxy voting activities.
Undertaking climate-related scenario analysis
UPP is making progress on our first systemic scenario analysis to understand how climate risks (both transition and physical) might impact the Plan’s assets and broader capital markets under different climate-related scenarios and time horizons.
Joining the UN-convened Net-Zero Asset Owner Alliance
UPP became the fourth Canadian organization to join the UN-convened Net-Zero Asset Owner Alliance, collectively representing over $10.9 trillion in assets under management. Alongside the other Alliance members, UPP participates in direct and collective advocacy with policymakers and within the financial sector to help encourage the conditions for a well-managed climate transition. The Alliance provides UPP with access to collaborative forums and resources that will enhance our methodologies and reporting frameworks.
How we invest
Our investment mandate is to earn sufficient long-term returns, at an appropriate level of risk, to deliver secure, stable pension income to our members today and tomorrow.
Statements and submissions
We participate in direct and collective advocacy and engagement with policymakers, regulators, and within the financial sector.
Responsible investing
As a long-term investor, we must take meaningful action to create sustainable value through evidence-based practices.
- © 2024 University Pension Plan