- Sets an ambition to have $70 billion in Climate Transition Aligned private investments by 2030, approximately doubling from current levels.
- Strategy leverages Ontario Teachers' strengths as an active investor in private markets to capture opportunity and drive tangible real-world impact.
- Climate strategy pillars include investing directly in climate solutions and working with portfolio companies to advance decarbonization plans.
- The strategy's Framework has been reviewed and endorsed by the Climate Bonds Initiative.
TORONTO, Feb. 19, 2026 /CNW/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") today announces its 2026-2030 climate strategy designed to build climate resilience, capture investment opportunities created by the energy transition, and make a real-world impact.
The strategy introduces a 2030 target of $70 billion in Climate Transition Aligned ("CTA") assets in private markets, encompassing investments in companies that are decarbonizing their operations and those enabling the global energy transition. This reflects a sizable ambition to approximately double holdings in CTA assets over the next five years1.
"Our mission is to deliver retirement security for our members, and that includes effectively addressing material long-term opportunities and risks that come with climate change and the energy transition," said Jo Taylor, President and CEO. "Our climate strategy recognizes that the world's shift to cleaner energy is underway and represents a generational investment opportunity that stands to reshape economies. By focusing our efforts in private investing and active ownership where we have influence, we are positioning the Fund to remain resilient and constructively contribute to the transition through the companies in which we invest."
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Ontario Teachers' climate strategy comprises two core pillars of focus and opportunity:
1. Investing in Climate Solutions
Deploying capital into companies that provide products, services or technologies that:
- reduce or remove greenhouse gas emissions,
- help manage exposure to climate-related risks, or
- enable or scale climate solutions.
2. Accelerating Credible Transition Planning
Working with relevant portfolio companies to develop and advance decarbonization plans that strengthen climate resilience and support long-term business value. This includes identifying decarbonization levers, assessing technology and capital needs, and helping companies prepare for the risks and opportunities of a changing energy system.
Having achieved an approximately 50% reduction in emissions intensity from its 2019 baseline, Ontario Teachers' met its 2025 target ahead of schedule, creating an opportunity to reaffirm its forward-looking approach to climate risk and opportunity. Its 2026–2030 climate strategy shifts toward real-world impact, prioritizing and measuring investments aligned with a net-zero future rather than emissions intensity, which remains useful for company comparisons but not for measuring real-world progress on the energy transition. Decarbonization will continue to be a core focus of asset management, even as emissions intensity is no longer a primary metric.
"Ontario Teachers' has long believed in the importance of addressing climate opportunities and risks as part of our focus on delivering long-term returns that sustain pensions," said Anna Murray, Senior Managing Director and Global Head of Sustainable Investing. "Our climate strategy reflects an impactful and pragmatic evolution that builds on our progress and learnings to date and leans into our strengths as a private investor. Accelerating the global energy transition will require a significant role for private capital, and we are pleased to set out an ambition that can have a real-world impact through working with our companies to advance transition planning and directing capital toward attractive investments in sectors tangibly enabling the energy transition."
Ontario Teachers' remains committed to taking an active role in supporting the global goal to achieve net-zero emissions by 2050, alongside the efforts of governments, businesses, financial institutions, and civil society. In support of this goal, by 2050 we plan for our portfolio to be primarily invested in assets aligned with our CTA Framework and/or low emissions assets2,.
Ontario Teachers' climate strategy is available on Our Climate Strategy page and described in detail in our CTA Framework , which leverages international best practices and has been reviewed and endorsed by the Climate Bonds Initiative.
"Ontario Teachers' CTA Framework is an example of what leading investors globally are doing to help deliver a more impactful approach to investing in and accelerating the much-needed energy transition," said Sean Kidney, CEO and Co-founder, Climate Bonds Initiative.
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Reporting on our progress
Ontario Teachers' will report on our progress toward our 2030 CTA target annually, starting in the 2026 Annual Report, along with continued disclosure of the fund's portfolio carbon footprint. In line with its 2026-2030 climate strategy, Ontario Teachers' will retire its previously announced 2030 interim emissions intensity target and incorporate programs under its prior approach within the new CTA Framework.
About Ontario Teachers'
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $269.6 billion as at June 30, 2025. Ontario Teachers' is a fully funded defined benefit pension plan, and it invests in a broad array of asset classes to deliver retirement security for 343,000 working members and pensioners. For more information, visit otpp.com and follow us on LinkedIn.
Media Contact
Dan Madge/ Alisha Prakash
Ontario Teachers'
[email protected]
SOURCE Ontario Teachers' Pension Plan
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