Climate Action


Climate Action

Investments / Responsible Investing / Climate Action

Climate Action

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 fully committed to making sure that climate change forms a critical component of our Environmental, Social and Governance (ESG) strategy.

Climate change presents both a systemic investment risk and opportunity. IMCO integrates the impacts of the transition to a low-carbon economy and the physical impacts of different climate outcomes into our investment process.

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. IMCO is committed to playing a role in moving toward a net-zero future for the world and to help build a stronger, more resilient, and sustainable global economy.

We will continue to look for opportunities for value creation from the transition to a lower carbon economy, while mitigating the systemic risks presented by climate change.

Climate Action Plan

IMCO’s climate strategy focuses on four areas: capital deployment, asset ownership, portfolio management, and climate guardrails. Our plan will contribute towards delivering sustainable long-term risk-adjusted returns for our clients, and achieve IMCO’s long-term goal of net zero GHG emissions by 2050.

Capital Deployment

IMCO is committed to investing in climate positive and transition-investment opportunities, with an emphasis on direct investments that support a lower-emissions portfolio.

IMCO’s capital deployment priorities include developing targets for investments in climate change solutions, investing in assets and funds that will support the transition to a low-carbon economy; and supporting companies on a path to climate leadership.

Our Activities
We have started investing in climate-positive and transition opportunities, such as our acquisition of Green Frog Power Limited and a significant commitment as an initial investor to Brookfield’s Global Transition Fund. IMCO will transform Green Frog, historically an operator of flexible generation projects in the UK, into a clean energy storage platform that operates utility scale batteries. The Brookfield Global Transition Fund is the largest fund focused on the global transition to a net zero economy and aims to transform carbon-intensive businesses to achieve Paris-alignment.

Asset Ownership

Using our influence, scale, and strengths, IMCO will engage with managers and partners to enable systemic change, advocating for net zero aligned investments, policy, and regulation.

Our asset ownership priorities include supporting joint industry action on climate change and developing an engagement strategy with clear expectations and requirements when engaging on climate change with fund managers and management teams.

Our Proxy Voting Guideline incorporates an explicit principle on climate change risks and outlines that IMCO will generally vote in favour of shareholder proposals that require: (1) information on risks it faces related to climate change, or on how the company identifies, measures, and manages such risks; (2) adoption of greenhouse gas reduction targets; (3) development of climate scenario analysis; and (4) disclosure of lobbying activities.

Our Activities

IMCO has been collaborating with leading institutional investors on climate initiatives, including the Paris Aligned Investment Initiative (PAII), Climate Engagement Canada (CEC), the global investor statement to governments on the climate crisis, and the Canadian investor statement on climate change. IMCO has implemented a robust proxy voting policy that includes climate change expectations. IMCO also engages with fund managers and management teams on their climate change strategies and advocates for climate action plans aligned to net zero.

Portfolio Management

We are focused on sustaining returns for our clients by integrating climate-related risks and opportunities into investment decision-making processes.

Our portfolio management priorities include establishing emission reduction targets and integrating additional climate data sets and tools into our climate risk and opportunities assessment.

Our Activities

IMCO includes climate risk and opportunity assessment in our investment due diligence processes. We have conducted scenario analysis on our portfolio and are establishing our portfolio and operational emissions baseline.

Climate Guardrails

IMCO will establish restrictions and limitations for high-emission sectors to minimize exposure to investments incompatible with a net zero economy while also supporting assets with a viable transition path.

Our Activities

We are investing in assets positioned for climate leadership and will limit investing in thermal coal companies without a credible Paris-aligned transition plan.

IMCO’s Climate Action Commitments

  1. In November 2021, IMCO became a net zero signatory to the PAII. Established in May 2019, the PAII supports asset owners and managers globally to implement action in line with the Paris Agreement goals. By joining the PAII, IMCO also became part of the U.N. Race to Zero and the Glasgow Financial Alliance for Net Zero (GFANZ).
  2. IMCO is a founding participant in Climate Engagement Canada (CEC), a finance-led initiative that aims to drive dialogue between the financial community and Canadian corporations to promote a just transition to a net zero economy.
  3. IMCO is a signatory of the 2021 Global Investor Statement to Governments on the Climate Change Crisis, a statement signed by 457 investors representing over USD $41 trillion in assets.
  4. IMCO is a signatory of the Canadian Investor Statement on Climate Change, signed by 35 institutional investors managing more than CAD $5.2 trillion in assets.
  5. IMCO is a member of Climate Action 100+, an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.
  6. IMCO joined the Partnership for Carbon Accounting Financials (PCAF), a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments.
  7. Climate change is a multi-year journey for IMCO, requiring a dynamic action plan that can respond to rapidly evolving science and stakeholder expectations. As part of IMCO’s climate action plan and net zero commitment, we will establish interim targets by the end of 2022 for emission reductions and investments into climate solutions.

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.