TORONTO – The Ontario Teachers' Pension Plan Board (OTPP) announced a significant shift in its climate strategy, moving away from an emissions intensity target for its portfolio to focus on specific climate investment objectives. This change forms part of the pension board's new targets for 2030, reflecting a commitment to adapt to the evolving landscape of climate investment.

Under the new strategy, OTPP aims to double its investments in what it describes as "climate transition aligned" private investments, targeting a total of $70 billion. This marks a departure from the previous goal of reducing the carbon emissions intensity of its portfolio by 67 percent by 2030, relative to a baseline established in 2019.

OTPP has reported that it has already reached its interim target of a 50 percent reduction in emissions intensity. The shift in focus now emphasizes investments that align with a transition to a net-zero future, which OTPP believes is a more effective way to gauge progress on mitigating climate change.

In its revised climate strategy, the board emphasizes the importance of investing in direct climate solutions, such as initiatives aimed at emissions reductions and risk management. Furthermore, OTPP plans to work closely with portfolio companies to advance their decarbonization efforts actively.

Jo Taylor, the CEO of OTPP, articulated the necessity of addressing climate change, stating that understanding both the risks and opportunities presented by climate change is fundamental to the organization’s mission of ensuring retirement security for its members. Taylor highlighted that the global transition to cleaner energy represents a generational investment opportunity capable of reshaping economies profoundly.

As of June 30, 2025, the defined benefit pension plan reported net assets totaling approximately $270 billion. The pension is managed on behalf of around 343,000 working members and pensioners, which underscores the significant impact of these investment strategies on the financial security of its members.

This announcement signals OTPP's commitment to adapting to a more sustainable investment environment. By prioritizing climate-aligned investments, the pension board aims to not only contribute to the global energy transition but also position itself strategically in the evolving market landscape.