As the world continues to work toward solving the climate crisis, we understand HOOPP members want to know that their pension plan is doing its part. We hope this message is helpful.
Our promise to you
HOOPP is guided in everything we do by one singular purpose: deliver on the pension promise to the healthcare workers of Ontario, and continue to do so long term. This is not just our mission, it is our fiduciary duty to you.
What does this mean when it comes to climate change? It means we need to make sure our climate plan to manage climate risk is credible and science-based, and focused on the long-term financial health of HOOPP’s investment portfolio. As such, we need to recognize that the transition to a green economy comes with both risks and opportunities, that we must manage both, and that there are no quick fixes to this complex, global challenge, but there is one direction toward what’s good for the Plan and the Planet.
What we have done
HOOPP released our climate change strategy this past March. We took our time to get it right and we are proud to have developed a thoughtful approach for achieving net zero in our portfolio by 2050, including 2025 and 2030 activities and targets. The plan is ambitious but achievable and, most important, it is designed to achieve actual emissions reductions, not just in our portfolio of investments.
This climate plan is just the latest step in HOOPP’s history of sustainable investing.
- HOOPP was the first pension plan in Canada to enact a greenhouse gas policy on our real estate portfolio, a portfolio that is recognized as a global leader in sustainability.
- HOOPP invests in green bonds and transition-enabling infrastructure.
- HOOPP most recently implemented a $1 billion portfolio allocation to climate change equities.
What we will do
HOOPP will fight climate change in support of members’ pensions and will do so through engagement and collaboration, not divestment. In other words, HOOPP will take an approach that manages all risks to members’ pensions, including climate change, so that members can continue to count on HOOPP for their pension.
Through engagement and collaboration, HOOPP can use its influence as a large investor to steer companies towards credible net-zero plans. If we simply divest from a company, there is no guarantee the next owner will be interested in pushing that company to decarbonize. Divesting may reduce actual emissions in our portfolio, but it will not reduce emissions. And we want to make a tangible impact.
As part of our commitment to engagement, HOOPP is a founding member of Climate Engagement Canada (CEC). Other members of CEC include other pension plans, banks, universities and investment firms. The purpose is to drive a dialogue between large investors and the businesses we invest in to promote a just transition to a net-zero economy.
Learn about our efforts and approach to addressing climate change.
Final word
Climate change is a serious risk which demands action. That is why HOOPP has developed a climate change strategy aimed at meaningful, impact. Our closing pledge is that we will continue this dialogue with you, our members. HOOPP will work to deliver against its climate change strategy and will report on our progress. Most importantly, as we manage climate risk as part of all the risks facing the plan, we will never stray from our mission: to deliver on our pension promise to you.