Teachers’ pension plan targets high carbon-emitting companies

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The Ontario Teachers’ Pension Plan plans to invest $5-billion in some of the world’s biggest greenhouse gas emitters as part of a strategy to boost returns while tackling climate change

Teachers launched a “high carbon transition” initiative this month that will see one of the country’s largest fund managers, with $242-billion in assets, take significant stakes in businesses with outsized GHG emissions, then back strategies to reduce their carbon output.

Mr. Taylor said Ontario Teachers’ expects to take significant positions in four or five companies that generate up to 10 times the GHG emissions of the pension plan’s typical portfolio company. Over time, the fund manager expects that working with these businesses to lower GHG emissions will significantly improve their valuations and earn benchmark-beating returns for the fund, which is responsible for the retirement savings of 333,000 teachers.

Sectors with outsized GHG emissions include transportation, electricity production, heavy industry and agriculture, and Ontario Teachers’ has three decades of experience as an investor in all of these areas. Mr. Taylor, who was named CEO in January, 2020, said the fund manager’s environmental, social and governance strategy is also meant to showcase Teachers’ “distinct brand” as an investor on the global stage, “where we are often seen as one of the Canadian pension plans. While we are in good company under that characterization, it does not help us be the first choice with investment partners and to secure and retain the best talent.

 

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Well they also are big on retirement homes where they resist paying proper wages and rip off old people, so nothing to see here.

Sure sounds like a breach of fiduciary duty to their investors.

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