UTAM’s climate response reflected in the 2023 Carbon Footprint Report and TCFD Report

2023 Carbon Footprint Report

We’re pleased to announce the publication of our 2023 Carbon Footprint Report. Again this year, we maintained steady progress towards our long-term goal of net zero carbon emissions associated with the Endowment’s Sub-Portfolio, which is comprised of equity, equity-like and corporate bond securities, by 2050.

At December 31 2023, the Sub-Portfolio’s carbon footprint was 32.4 tonnes of CO₂ equivalent per million dollars invested (tCO₂e/$M), down from 37.8 tCO₂e/$M at the end of 2022. Absolute emissions were 96,760.1 tCO₂e, down from 99,307.8 tCO₂e at the end of 2022.

UTAM’s carbon reduction commitments are in line with the targets and methodologies recommended by the Net-Zero Asset Owner Alliance, which UTAM joined in 2021. In participating in the Alliance, we also commit to setting interim targets on the path toward the 2050 net zero goal. Our interim target, for 2030, is a 50% reduction in the Sub-Portfolio’s carbon footprint, based on a 2019 baseline.

Limited assurance review

To enhance our reporting and accountability, UTAM again engaged PricewaterhouseCoopers LLP to undertake a limited assurance review of our carbon footprint results for the Sub-Portfolio. This assurance review examined our carbon footprint calculations and reported outcomes; PwC’s opinion accompanies the 2023 Carbon Footprint Report.

New carbon offset program

In 2023, UTAM began participating in a new institutional carbon offset program for air travel, launched by the University of Toronto. For any necessary flights funded by U of T, the university charges a fee for every kilometre flown to fund carbon-reduction projects on the university’s campuses, such as a 2,100-tree reforestation project at the Koffler Scientific Reserve.

While we have purchased carbon offsets each year since 2017, in respect of our air travel and other operations, the university’s initiative now brings us closer to the sustainability projects such offsets intend to support. Our participation in 2023 offset 145 tonnes of CO₂ emissions.

2023 TCFD Report

The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) provide guidelines for climate-related financial disclosure recommendations, intended to promote transparency and lead to better management of risk related to climate change. UTAM began following these recommendations and providing TCFD reports as part of our transparent reporting on responsible investing activities in 2020. Our 2023 TCFD Report details UTAM’s management of climate-related financial risks in four areas: governance, strategy, risk management, and metrics and targets.

The 2023 Carbon Footprint Report and TCFD Report reflect our commitment to responsible investing and the integration of environmental, social and governance (ESG) factors into various aspects of our investment and risk management, including decision-making, manager selection, stewardship activities, reporting and disclosure.

Read and download the Carbon Footprint Report and TCFD Report.