Wellington and Ontario Teachers’ Expand Strategic Relationship to Leverage Climate Science Research in the Pension Plan’s Investments
May 5, 2020 – Wellington Management Company LLP (“Wellington”), one of the world’s largest independent investment management firms, and Ontario Teachers’ Pension Plan (“Ontario Teachers’”), the largest single-profession pension plan in Canada, today announced they have expanded their strategic relationship to further integrate leading climate science research into the pension plan’s investments.
This new project builds on the long-standing strategic relationship between Wellington and Ontario Teachers’. The partnership is based on a common investment philosophy and long-term perspective. The focus on climate risk is an example of forward-looking initiatives the two organizations are exploring together that focus on far-reaching changes in the investment landscape.
Wellington and Ontario Teachers’ will collaborate with Woods Hole Research Center, the world’s top-ranked climate change think tank, and draw on its scientific expertise. Ontario Teachers’ will seek to apply findings from leading-edge climate research to the execution of Ontario Teachers’ investment strategies, which span a diverse set of geographies, sectors, and asset classes, and include long-term assets such as private equity, real estate, and infrastructure. This initiative will provide deep insights for Ontario Teachers’ investment teams on the medium- and long-term financial implications of physical climate-related risks.
“Our investments, particularly those in real assets, require careful consideration of the physical risks posed by climate change. With access to top-quality climate science data, we can build on our own expertise in this area and use the research provided to develop deeper insights,” said Ziad Hindo, chief investment officer at Ontario Teachers’. “The world will not be the same after COVID-19, but our commitment to responsible investing will not change. Strong, mutually beneficial relationships, such as ours with Wellington and Woods Hole, will continue to be a key component of delivering on our commitment.”
Wendy Cromwell, vice chair and director of Sustainable Investment at Wellington, noted, “We are excited to work with Ontario Teachers’ to bridge the gap between finance and climate science. Physical climate risks are unfolding and will impact companies, economies, and society. It is a privilege to work on behalf of the teachers of Ontario to understand and navigate these risks and opportunities.”
“If humanity is to meet the grand challenge of climate change, all sectors of society will need to participate. This partnership is a powerful step, because it helps business and financial communities understand the physical risks of climate change and how they affect livelihoods,” said Dr. Philip B. Duffy, president and executive director of the Woods Hole Research Center.
About Wellington Management
Tracing our history to 1928, Wellington Management is one of the world’s largest independent investment management firms, serving as a trusted investment adviser to more than 2,200 institutional clients and mutual fund sponsors in 60 countries. Wellington had over US$1 trillion of client assets under management as of 30 December 2019. To learn more, please visit our sustainable investing site and/or our Canadian client site.
About Ontario Teachers’
The Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is the administrator of Canada’s largest single-profession pension plan, with $207.4 billion in net assets (all figures at December 31, 2019). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.7% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 329,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
About Woods Hole Research Center
The Woods Hole Research Center [whrc.org] (WHRC) has been studying climate change and developing solutions since 1985. WHRC works with an international network of partners in the private and public sectors to ensure that science is put to use in climate policy and decision-making. Recent major science and policy projects have taken place in Alaska, Brazil, Mexico, Nepal, the Democratic Republic of the Congo, and others, with collaborators such as the World Bank, NASA, USAID, and The Nature Conservancy. WHRC has earned Charity Navigator [charitynavigator.org]’s highest rating of 4 stars, as well as a Gold Seal of Transparency from GuideStar [guidestar.org]. Follow WHRC on Facebook [facebook.com], Twitter [twitter.com], and Instagram [instagram.com] or subscribe to our monthly newsletter [whrc.org].