IMCO releases interim net zero targets
Plan will reduce portfolio carbon emissions intensity by 50% and will invest 20% of portfolio in climate solutions by 2030
TORONTO (November 21, 2022) – The Investment Management Corporation of Ontario ("IMCO") today announced its 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.
- 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.
"At IMCO, we believe that the global transition to a net zero economy will be one of the more powerful investment trends in the coming years. It will create material risks and opportunities for all investors, including our clients," said Bert Clark, President and Chief Executive Officer, IMCO. "The targets we have set for 2030 reflect our pragmatic approach to helping our clients mitigate the risks and benefit from the opportunities associated with the transition to a low-carbon economy."
IMCO has a plan to achieve these interim targets, taking action across all four areas of its climate strategy:
1. Capital Deployment
- IMCO will increase its investment in climate solutions to 20% of IMCO's portfolio by 2030. Climate solutions are defined in line with the categories detailed in the Green Bond Principles, as set out by the International Capital Markets Association
2. Portfolio Management
- prioritize partnerships with external managers that have existing or intended net zero commitments
- increase investment in companies with net zero commitments
3. Asset Ownership
- 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
4. Climate Guardrails
- 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
"IMCO's interim targets are built on a number of practices already followed by our investment teams, and consistent with all of our investment strategies," said Rossitsa Stoyanova, Chief Investment Officer, IMCO. "We are confident in our ability to achieve these targets, especially as we have already made significant investments in the energy transition. These interim targets will drive and guide investment decisions that both earn returns for our clients and make progress towards a low-carbon economy."
For further details on how IMCO will achieve its interim targets, read IMCO’s Climate Action Plan.
The Investment Management Corporation of Ontario (IMCO) manages $79 billion of assets on behalf of our clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and Twitter @imcoinvest.