The Ontario Teachers’ Pension Plan Board says it’s moving away from an emissions intensity target for its portfolio to instead focus on climate investment goals.
In its new 2030 target, the pension board says it’s aiming to double what it calls “climate transition aligned” private investments to $70 billion.
“Our climate strategy recognizes that the world’s shift to cleaner energy is underway and represents a generational investment opportunity that stands to reshape economies,” said chief executive Jo Taylor in a news release.
OTPP says it will retire its 2030 goal of a 67% reduction in the carbon emissions intensity of its portfolio compared with a 2019 baseline, along with its goal of a net zero emissions portfolio by 2050.
While it says it has already reduced its emissions intensity by 50%, it says the portfolio-wide measure is “imperfect” for diverse portfolios, and for the investments in higher-emitting activities needed to decarbonize over the long term.
OTPP, which manages about $270 billion in assets on behalf of 343,000 members, says it remains committed to supporting the global goal of net-zero emissions by 2050, and aims to have its portfolio primarily invested in climate transition aligned assets by then.
The pension board says emissions intensity remains useful for company comparisons, but not for measuring real-world progress on the energy transition.
It says its climate strategy is focused on investing in direct climate solutions like emissions reductions and managing risks, as well as working with portfolio companies to advance decarbonization plans.
“By focusing our ambitions in private investing and active ownership where we have influence, we are positioning the fund to remain resilient and constructively contribute to the transition,” said Taylor.
OTPP is not the first major Canadian pension plan to drop net-zero targets, following CPP Investments which quietly did the same last year.
Advocacy group Shift Action for Pension Wealth & Planet Health said that while a focus on investing in decarbonization rather than portfolio emissions can make sense, OTPP’s strategy looks to be short-sighted and incomplete.
The group says OTPP has needlessly watered down its net-zero commitment and that its plan lacks the required ambition and guardrails, representing deep flaws in its strategy.
“The leadership of major pension funds like Ontario Teachers’ needs to question if they fully understand the gravity of the climate crisis,” said Adam Scott, executive director of Shift, in a news release.
In announcing the plan, Taylor said the climate is integral to the pension board’s approach.
“Our mission is to deliver retirement security for our members, and that includes effectively addressing material long-term opportunities and risks that come with climate change and the energy transition.”
This report by The Canadian Press was first published Feb. 19, 2026.
