Sustainable
Investing
OMERS Infrastructure has adopted OMERS core mission to deliver secure and sustainable pensions to its members. OMERS believes that well-run organizations with sound ESG practices will perform better, particularly over the long term, and that investing in these companies is consistent with its fiduciary duty to its members.
We incorporate sustainable investing principles into investment analysis and decision-making processes. Our sustainable investing approach is grounded in four overarching strategies:
integrating ESG factors into investment decision-making processes
actively engaging with portfolio companies to promote sustainable business practices
collaborating with institutions to exchange information, evolve practices and advocate for better transparency
continually adapting the approach to ensure it remains relevant and effective over time
Climate Change
Climate change is one of the defining issues of our time. We believe that as institutional investors, we have an important role to play as the world transitions to a lower carbon economy. We are focused on growing sustainably, by developing partnerships across our portfolio and finding new investment opportunities that support the transition.
OMERS incorporates climate change considerations into its investment guidance and decision-making and evaluates on a case-by-case basis where financial exposure to climate-related risks could be material.
OMERS has endorsed the Task Force on Climate-Related Financial Disclosures (TCFD) as it believes it is a helpful standard to deliver the information investors need to assess climate risk. We believe that engaging with our portfolio companies where climate change presents material risks, and striving to improve overall reporting and transparency, will enhance our understanding of the financial risks posed by climate change on our portfolio. More about OMERS approach to Sustainable Investing and ESG can be found here.
“We apply an integrated ESG lens to our asset pursuits and to the management of our portfolio. Our comprehensive approach covers everything from our initial examination of a potential new investment, and extends to using our governance rights as investors to evaluate our portfolio companies’ ESG practices including inclusion & diversity, the impact of climate change and the role our portfolio companies play in creating social value amongst many others.”
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 ESG 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 ESG factors are often long term in nature, we recognize ESG factors can play a part in assessing the valuation and future performance of an investment over the short, medium and long-term. Further, ESG factors can impact the reputation of an investee company and potentially of OMERS.
Committing to a low-carbon future
OMERS vision is to be a leader in sustainable investing, to better protect and generate superior value for its members over the long term.
