As we continue evolving and enhancing our approach to responsible investing, UTAM has committed to disclose the carbon footprints of the investments we manage on behalf of the University of Toronto.
We underlined that commitment in September 2017 by signing the Montréal Carbon Pledge, joining more than 120 global investors that are collectively responsible for over US$10 trillion in assets under management. Now we’re pleased to publish our first Carbon Footprint Report, which calculates greenhouse gas emissions from companies in the university’s Pension and Endowment investment portfolios as of September 30, 2017.
The report describes how we defined and measured the carbon footprint of both portfolios. Our analysis included an in-depth review of carbon emissions by sector, country, asset class, investment manager and individual company. For each of these variables, we looked at both its absolute contribution to the carbon footprint and its relative contribution compared to the Reference Portfolio that is the benchmark for all of our investment activities.
“The intensive analysis behind our Carbon Footprint Report equips us to have more focused conversations with investment managers on how they consider carbon emissions in their investment decision-making,” says Daren Smith, UTAM’s President and Chief Investment Officer. “We now take into account carbon emissions, where relevant, in evaluating potential managers and monitoring the performance of existing managers. It’s another important dimension of our responsible investment strategy and reflects the University of Toronto’s commitment to take decisive action on climate change.”