![]() ![]() While explaining it intends to “carefully consider” its position, the UPP refers back to its own Climate Action Plan and reiterates a belief that “investors have several mechanisms to catalyze the transition to a resilient, net-zero world.” So far, however, the UPP response has been tepid. ![]() ![]() The UPP should join other leading investors by committing to a full exclusion of companies that explore for, extract, produce, refine and transport fossil fuels in the UPP’s investment portfolio. Now would be an ideal time for Zvan to go further and endorse a truly responsible approach to climate-aligned investing. UPP president Barbara Zvan is one of the most climate-positive investment managers in Canada and has consistently shown support for the NZAOA’s forward-thinking positions. This is where the UPP can step in and consolidate its role as one of the leading proponents of responsible investing practices in North America. Instead, the final document has been watered down, calling for members to “practise discipline in all infrastructure financing decisions in alignment with emissions targets and 1.5 C scenarios.” The NZAOA recognizes the need for immediate action for a fossil fuel phaseout and calls on member organizations to align investment with credible 1.5 C scenarios.īut despite its previous endorsement of the International Energy Agency’s net-zero scenario, the new NZAOA statement fails to acknowledge that there is no room in feasible 1.5 C scenarios for investments in new oil and gas projects.Īccording to one insider watchdog, references to ending investments in new upstream, midstream and downstream oil and gas infrastructure were removed from a 2022 draft of the NZAOA’s policy. In March, the NZAOA set out new guidelines for investor signatories in its Position on the Oil and Gas Sector. That’s why we will stop contributing to the growth of global oil supply.” The NZAOA’s other Canadian signatory, Caisse de dépôt et placement du Québec, has already divested from all oil producers, stating: “We believe that the risk/return outlook for oil producers and their climate impact are not aligned with our long-term objectives. It’s one of just two Canadian pension funds that belong to the NZAOA, a global alliance of institutional investors committed to aligning their portfolios with a maximum temperature rise of 1.5 C by 2050. The UPP is the $11.8-billion pension manager for 37,000 faculty and staff at the University of Toronto, Queen’s, Guelph and Trent. It can leverage its membership in the Net Zero Asset Owner Alliance (NZAOA) and stop investing in the oil and gas companies that are putting our pensions and our climate at risk. This year, Ontario’s University Pension Plan (UPP) has a big opportunity to cement its leadership as a climate leader among Canada’s public pension funds. ![]()
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