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HOOPP

Climate Change

Climate Change

Climate Change

Investments Sustainable Investing Climate Change

Climate change poses one of the most urgent and pressing systemic challenges of our time. It presents unique risks and opportunities that requires coordinated action from governments, corporations, individuals and institutional investors like HOOPP. While the issue of climate change is complicated and constantly evolving, it can no longer be approached solely as a long-term issue.

HOOPP recognizes climate change may impact and influence our investment strategy through:

  • physical impacts such as increased risk of flooding and other severe weather events, or changes in agricultural growing seasons
  • transition impacts such as policy interventions, technological innovations and changes in consumer preferences

These impacts can affect individual companies, entire sectors, geographies and economies.

Our Board of Trustees and executive management team have made climate change a priority. We recognize that climate change poses both material risks and opportunities, and managing these is important. As a pension plan, we have a fiduciary responsibility to deliver on our pension promise to Ontario healthcare workers. We consider climate risk as part of our investment management process. You can read more about the steps we are taking below.

HOOPP’s net-zero commitment and plan to reduce portfolio emissions

Achieving a net-zero portfolio by 2050

Achieving a net-zero portfolio by 2050

In early 2022, we committed to achieving net-zero emissions in our portfolio by 2050. Our commitment and plan to achieve net zero is a multi-decade goal. To achieve that long-term goal, we have thoughtfully designed interim targets that work in tandem, with each reinforcing the other.

Our plan’s areas of focus are:

  • Encouraging companies to adopt credible, science-based transition plans that can directly reduce the greenhouse gases that enter the atmosphere.
  • Increasing the capital made available for green investments that support our net-zero commitment and help us deliver on the pension promise.
  • Focusing on emissions reductions by prioritizing actual emissions reductions over selling assets that may reduce our carbon footprint but not the world’s footprint.

“Our climate change strategy has been built on the belief of doing what's good for our pension plan and good for our planet.”

- Jeff Wendling, President and CEO

1

Our net zero targets at-a-glance

By 2025, we target:
  • ✓ 80% of our assets providing reported emissions1 for more accurate measurement.
  • ✓ Having initiated Scope 3 portfolio emissions measurement.
  • ✓ Excluding new direct investments in private thermal coal and oil exploration and production companies.
By 2030, we expect to have:
  • ✓ Reduced our portfolio’s carbon footprint to 28 tCO₂eq/$M, compared to our baseline of 41 tCO₂eq/$M at the end of 2021.
  • ✓ Reduced our real estate portfolio’s emissions1 by 50% on an absolute basis through direct decarbonization efforts at our owned properties under our operational control.
  • ✓ Committed over $23 billion towards green investments.
  • ✓ 50% of our infrastructure and private equity portfolios covered by credible transition plans.

1 Scope 1 and Scope 2

We will continually monitor, review, and adjust our plan for changes in external factors, which can include regulatory changes. As we approach 2030, we will assess our progress against our 2030 targets as part of our preparation for the next five- and ten-year periods of 2035 and 2040. Our performance against the interim targets will give us visibility on how we are tracking towards our 2050 commitment.

HOOPP’s climate change strategy


HOOPP will report on our climate change progress in our Annual Report, which is published annually. Additionally, you can learn more about our Climate-related Disclosure reporting, which provides further information on how we manage climate risk and invest in climate-related opportunities.

Building on what we’re already doing

Driving change through active stewardship

Driving change through active stewardship

Being a responsible steward of our investments is a key pillar of our sustainable investing framework and how we address climate change. We have taken steps to further strengthen our stewardship, which you can read about below.

Climate Engagement Canada logo

HOOPP is a founding member of Climate Engagement Canada (CEC) and a member of the Steering Committee. CEC is a collaborative initiative focused on driving climate action at Canadian companies that will lead to reduced emissions and decarbonization. CEC began engaging with some of Canada’s top-emitting companies in 2022.

Expanding our climate disclosures

Expanding our climate disclosures

In 2008, HOOPP became the first Canadian pension plan to release a carbon emission policy for our real estate portfolio. At the same time, we also began measuring carbon emissions for our real estate holdings and have since expanded this to our public equities portfolio.

Our approach to divestment

Our net-zero portfolio plan seeks to lower our carbon footprint through actual emissions reductions. Our portfolio’s emissions could be reduced by simply selling a high-emitting investment to another investor, who may not be concerned about carbon emissions. Our portfolio emissions would decrease, but the actual emissions would not: the high-emitting investment would continue to produce emissions.

We believe that engaging with high-emitting companies can lead to better outcomes when compared to divesting ownership of these companies without first seeking to use our influence as an investor.

HOOPP conducts engagements both directly with companies and through involvement with external initiatives, such as CEC, of which HOOPP is a founding member.

By urging and encouraging corporations to develop credible decarbonization plans, and by voting in support of climate-related proposals, HOOPP seeks to influence corporate behaviour. In the long term, remaining an active investor in companies can lead to actual impacts while enhancing value for our members.

Looking ahead

There is more work to be done in addressing climate change and we will provide updates on our progress annually.

This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.