Sustainable Investing
Three pillars
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:
*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.
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.
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.
"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."
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.