As IMCO continues to deliver on its mandate to build a multi-client global asset management service that will drive long-term benefits for public sector organizations in Ontario, we are committed to integrating ESG considerations into our investment decisions, ownership activities and selection of external managers. This allows us to better manage risk, capitalize on emerging sustainable investing opportunities and generate sustainable long-term returns for our clients.
IMCO is proud to embrace the targets and pledges of the 2015 Paris Climate Accord which outlines the goals and commitments required to reach net zero greenhouse gas (GHG) emissions by 2050. We have committed to achieving a net zero emissions portfolio by 2050 or earlier.
IMCO has established interim climate targets for 2030, consistent with science-based net zero pathways aimed towards the 1.5°C temperature goal of the Paris Agreement and net zero emissions by 2050.
IMCO will actively reduce its portfolio carbon emissions, while concurrently contributing to building the net zero economy through:
- An interim science-based target of 50% reduction in portfolio emissions intensity by 2030, as measuredagainst IMCO's 2019 baseline;
- Investments in climate solutions totaling 20% of the portfolio by 2030.
Climate Action Plan
• Prioritize partnerships with external managers that have existing or intended net zero commitments
• Increase investment in companies with net zero commitments
• Support its external managers and portfolio companies in establishing Paris-aligned plans and delivering portfolio emissions reduction
• Engage with its external managers and portfolio companies to increase the share of its portfolio reporting emissions data
• Exercise its right to vote at shareholder meetings, to encourage companies to manage climate-related risks and opportunities
• Collaborate with like-minded investors and policymakers to drive collective climate action
• Phase out new investment commitments in development of new unabated fossil fuel assets, in line with appropriate global, science-based scenarios
• Limit exposure to investments in thermal coal mining and arctic drilling
As a steward of client capital and a responsible organization, IMCO is committed to playing its part in the transition to a net zero emissions economy. Whether through direct engagement with portfolio companies and external managers, proxy voting or collaborative engagement with our peers, we aim to use our influence to promote strong climate action practices. IMCO's Stewardship Guideline includes our approach to engaging on climate change.
IMCO's Proxy Voting Guideline includes our policy on how we vote and criteria that need to be met to vote for a company's climate plan and/or resolution.
We expect companies to commit to a net zero GHG emissions target by 2050 or sooner, set science-based emission-reduction targets, and disclose climate information in line with TCFD.
IMCO’s Climate Action Commitments
IMCO is a proud member or signatory of these organizations
Climate Engagement Canada (CEC)
2021 Global Investor Statement to Governments on the Climate Change Crisis
Canadian Investor Statement on Climate Change
Partnership for Carbon Accounting Financials (PCAF)
Canadian Investor Statement on Diversity & Inclusion.
International Corporate Governance Network (ICGN)
Canadian Coalition for Good Governance (CCGG)
Principles for Responsible Investment (PRI)
Responsible Investment Association
Portfolio Carbon Footprint
We measure our portfolio carbon footprint in line with the PCAF standard. 2019 is our
baseline year and will be used to set our interim emissions reduction targets in 2022
in line with our net-zero commitment.
|Total financed emissions (tCO2e1)||3,223,480||2,324,864||2,351,913|
|AUM in scope for financed emissions ($ million)||46,942||49,694||55,150|
|Financed emissions intensity (tCO2e1 / $ million invested)||75||54||47|
1 Metric tones (t) of carbon dioxide (CO2) equivalent (e)