Canadian pension plan managers try to weight risks of climate change
CALGARY — A decision by an Ontario public pension manager to study the potential consequences of climate change is the latest sign that pension plans are increasingly becoming concerned about how it can hurt the bottom line.
OPTrust released a report last week that reviewed how four climate scenarios, factoring in policy changes and disasters including hurricanes and wildfires, would affect its $18 billion portfolio.
“The reality is there’s a lot of talk about climate change, there’s lots of thinking about it, but from an investor’s perspective we’re just at the beginning of the conversation,” said OPTrust CEO Hugh O’Reilly.
O’Reilly, who manages the plan on behalf of the Ontario Public Service Employees Union, said its a struggle to figure out the risks given how little companies reveal.