Carbon Footprint Reports

In July 2018, we published UTAM’s first Carbon Footprint Report, which accounted for greenhouse gas emissions from public equity investments within the Pension and Endowment 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, which is the benchmark for all of our investment activities.

The intensive analysis underlying our Carbon Footprint Report equips us to have more focused conversations with investment managers on how they consider carbon emissions in their decision-making. It’s another important dimension of our responsible investment strategy, reflecting the University of Toronto’s commitment to take decisive action on climate change.

Montréal Carbon Pledge

MCP logo

In September 2017, UTAM joined more than 120 global investors – collectively responsible for over US$10 trillion in assets under management – in signing the Montréal Carbon Pledge. Aligned with the Paris Agreement on climate change, the pledge reinforces our commitment to measure and disclose the carbon footprints of the University of Toronto’s Pension and Endowment portfolios. In 2018, we published our first Carbon Footprint Report for the Pension and Endowment public equity portfolios.

Signing the Montréal Carbon Pledge and publishing the carbon footprint of the Pension and Endowment portfolios is another example of putting our principles into action. In addition, we now take into account carbon emissions, where relevant, in evaluating potential managers and monitoring the performance of existing managers.

The table below shows the carbon footprint of the Pension investment portfolio and the Reference Portfolio, which is the benchmark that UTAM and the university use for all of our investment activities in the Pension and Endowment portfolios. The table indicates that the carbon emissions for the Pension portfolio were 13.1% higher than the Reference Portfolio as of September 2017, based on carbon emissions per million dollars invested. However, the Pension portfolio had about the same carbon intensity (-0.3%) as the Reference Portfolio and was more carbon-efficient based on its lower weighted average carbon intensity (-5.7%). The full Carbon Footprint Report for 2018 and a detailed explanation of the terms used in the table below and the methodology applied in the calculations are included at the bottom of this page.

 Carbon Emissions Per $Million Invested
(in tonnes CO2e / $million invested)
Carbon Intensity
(in tonnes CO2e / $million sales)
Weighted Average Carbon Intensity
(in tonnes CO2e / $million sales)
Reference Portfolio (pension weights)163.3270.2257.4
Difference vs Reference Portfolio21.4-0.9-14.6
Difference vs Reference Portfolio (%)13.1%-0.3%-5.7%
The table shows the carbon footprint of the Pension investment portfolio. The Endowment’s carbon footprint is substantially similar. Due to rounding, some values in the table may differ from the results of simple subtraction.

Carbon Footprint Report

As a signatory to the Montréal Carbon Pledge, UTAM has committed to measuring and disclosing the carbon footprints of U of T’s Pension and Endowment investment portfolios on an annual basis. This year’s report, our second, contains the portfolios’ carbon footprints as of September 30, 2018, and announces an ambitious goal to reduce them by 40%. The report also announces UTAM’s endorsement of the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD).