Climate action plan

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 4% in 2022 from our 2021 baseline, driven primarily by portfolio changes as well as a reduction in emissions intensity within many of our asset subclasses.

We are committed to continuously improving the quality of our data and methodology for determining our carbon footprint. In 2022, we revised our process to estimate with greater accuracy the GHG emissions of investee companies that do not disclose this data. To maintain comparability in our year-over-year reporting and the integrity of our targets, we have restated our 2021 footprint under the revised methodology.

For more information:

UPP's 2022 carbon footprint and targets

Metric tonnes CO2-eq/$M invested

Graph illustrating UPP’s 2022 carbon footprint and targets in metric tonnes CO2-eq/$M invested: 48 2021 baseline (restated), 46 (-4% from baseline) 2022, 40 (-16.5% from baseline) by 2025, 19 (-60% from baseline) by 2030, net-zero emissions by 2024.

Developing UPP’s Climate Transition Investment Framework

In 2023, UPP will publish our Climate Transition Investment Framework, 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, set targets for climate solution investments, and refine our approach to climate-related investment exclusions.

Undertaking climate-related scenario analysis

UPP will undertake our first systematic scenario analysis in 2023 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.

Engaging companies to drive credible climate plans and disclosures

We’ve joined with leading financial institutions, through collaborative initiatives such as Climate Action 100+ and Climate Engagement Canada, to engage top-emitting companies on the need for stronger climate risk governance, disclosure, and a swift transition to a net-zero world. We also vote at shareholder meetings to encourage companies to manage material climate-related risks and opportunities as a method of creating long-term value.

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.

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