Sustainable
Investing
OMERS Infrastructure supports OMERS goal to understand and evaluate the interconnected dynamics between sustainability* factors and long-term investing to assess how they may influence value, risk and opportunity in our investments, and our ability to deliver on the pension promise. We believe that well-run organizations with sound sustainable business practices will perform better, particularly over the long term.
We incorporate sustainability factors into our investment due diligence and asset management activities where they are relevant and material. Our approach is grounded in three pillars:
Integrating material sustainability factors through our investment and asset management practices.
We collaborate with like-minded institutions with a view to improving the foundations for sustainable investment. We recognize that the long-term health and sustainability of financial, environmental and social systems can impact the delivery of the pension promise.
We seek to actively engage with our investee companies and other industry stakeholders to advocate for sustainable business practices and a long-term mindset.
*As defined in the OMERS Sustainable Investing Policy found here
OMERS Climate Action Plan
This is our approach to achieving our climate-related ambitions and sets out the steps on our pathway to net zero carbon emissions in our portfolio and operations by 2050. We recognize the urgent, global challenge that climate change poses, the risk and opportunities to our investments and the role we can play at OMERS. Our approach is consistent with the science-backed, global goal of limiting the Earth’s temperature rise to 1.5°C.
Please see omers.com climate change page for more detail on the plan and related measures.
Our Approach in Action
We are focused on growing sustainably, by developing partnerships across our portfolio and integrating ESG factors into portfolio formation, active asset management, capital allocation and deal origination activities.
As an active participant in the energy sector through our global infrastructure portfolio and with a 25-year direct investment history across the energy spectrum, OMERS has gained perspective on the challenges and opportunities presented by the energy transition. Across our portfolio we have invested in companies that are addressing key sustainability issues as part of their business strategy. Below are some examples.
Associated British Ports (ABP)
Working towards decarbonization and investments in the energy transition
ABP is transitioning away from coal volumes through a strategic review and implementing EBITDA-accretive projects, including a biomass import terminal to replace the coal volumes imported by ABP's largest customer. Other projects implemented involve industries such as floating offshore wind, sustainable aviation fuel, and green hydrogen.
ABP has a track record of incorporating sustainability considerations into its port operations, and working to reduce its operational carbon emissions over the years. ABP's commitment to sustainability is reflected in their Ready for Tomorrow strategy.
Exolum (f.k.a. CLH)
Clear strategy of diversified growth and well-positioned asset base to capture value from the energy transition
Exolum' s business diversification strategy positions the company to participate in the energy transition through different routes: inorganic growth in chemicals, capex-intensive international aviation projects, biofuels, and hydrogen. Exolum is also rolling-out an innovation division to pursue new technologies and initiatives.
Kenter
Platforms offering energy solutions to customers seeking to reduce energy costs
Kenter is an energy infrastructure platform which focuses on providing medium-voltage offerings including transformers, switchgears and smart meters for commercial and industrial customers.
Kenter owns and operates a diversified portfolio of transformers, switchgears, and smart meters in the Netherlands, with a small presence in Belgium and Germany.
Bruce Power
Largest operating nuclear power facility in the world producing ~30% of Ontario's electricity
Bruce Power's Life-Extension program to advance a long-term investment program will provide GHG emissions free, reliable, low-cost electricity generation to 2064 and beyond.
Bruce Power is a leader in the production of medical isotopes for over 35 years. Their isotopes are crucial in the fight against cancer, sterilizing medical equipment, and advancing research in cancer treatments. Bruce Power's Indigenous Community Investment Fund demonstrates the company's commitment to the local Indigenous communities. The Fund has been instrumental in providing opportunity for consistent engagement with the communities, including those at the program manager level and Chiefs and Councils.
Leeward Renewable Energy (LRE)
One of the top 5 largest independent renewable energy platforms in the US powering over 1,450,773 homes
LRE is focused on incorporating sustainability considerations in its portfolio and throughout various stages of its projects.
As part of LRE's construction waste minimization effort, LRE recycled its decommissioned wind turbine blades, alongside solar panels. Through the company's strategic partnerships, these decommissioned wind turbines and blades are recycled into new materials, such as reinforcing fibers used to strengthen concrete.
LRE oversaw thousands of acres of land under robust vegetation and biodiversity management plans, established pollinator habitats in 2023 and implemented the innovative practice of solar grazing. Combining solar energy with grazing practices creates a balance between renewable energy production and agricultural land use.
Puget Sound Energy (PSE)
Largest integrated utility in Washington State, US , with a long-term strategy designed to support future generation, transmission and distribution needs, and decarbonization.
PSE strives to incorporate sustainability considerations in its business while delivering safe and reliable energy and keeping energy equity in mind.
PSE has a goal of achieving net zero carbon emissions electric supply for their Washington customers by 2030 and a 100% non-emitting electric supply by 2045, consistent with Washington State's CETA. In addition to reducing their own carbon emissions, PSE aims support transportation electrification and provide low carbon, cleaner fuels to fleet and marine vessels.
PSE also launched a pilot program in September 2023 to help low-income and gas-constrained natural gas customers transition to electric technologies for heating needs.
FRV Australia
Australian utility-scale renewables developer and operator committed to improve energy solutions through innovation, and to generate renewable energy
FRV Australia has delivered almost 800 MWdc of operational PV assets across 9 projects in Australia, contributing significantly to the country's renewable energy production.
FRV Australia's Winton Solar Farm in Wangaratta, Victoria, is a 250-hectare site that will provide enough energy to power approximately 50,000 average homes with renewable energy whilst sheep graze the site, helping to maintain grass levels.
"We focus on sustainability fundamentals that are material and value-add for each pursuit and asset in the portfolio. Our comprehensive and integrated approach covers the full life cycle from assessments of potential investments, planning for exits, and utilizing our governance rights as investors to promote and support prudent practices on community impact, inclusion & diversity, health & safety, climate change, and the role our portfolio companies play in creating social value."
Bruce Schlein, Director, Head of Infrastructure Sustainable Investing
See OMERS Sustainable Investing Policy. The specific approaches used by OMERS Business Units may vary given the nature of the assets or investment strategies they pursue and the extent to which sustainability factors may be relevant to investment performance. In addition, the level of influence that OMERS has over an investee company will generally vary in proportion to its economic interest. While sustainability factors are often long term in nature, we recognize the part they can play in assessing the valuation and future performance of an investment over the short, medium and long-term.
Investing for the future
OMERS invests for generations and looks far down the field to determine how best to protect and generate value for its members as new sustainability challenges and solutions emerge.
