Climate Action

Climate-Action-1

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 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 measured
  against IMCO's 2019 baseline; and

• Investments in climate solutions totaling 20% of the portfolio by 2030.

Climate Action Plan

IMCO's climate strategy focuses on four areas: capital deployment, portfolio management, asset ownership, and climate guardrails. Our Climate Action 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.

Stewardship

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

Collaborative engagement can increase our influence by having a bigger platform and voice. IMCO participates in climate initiatives that enable our ability to work collaboratively. As part of this commitment, IMCO joined several organizations to this goal.

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.

portfolio-emissions-graph

Add below table: Our TCFD disclosure in our 2021 ESG report provides additional detail on methodology, scope, and limitations for our portfolio emissions measurement.