UPP launches Climate Stewardship Plan – a roadmap for climate engagement, proxy voting and advocacy

When our Climate Action Plan was published in July 2022, we established a clear set of climate-related commitments acknowledging that our ability to realize adequate investment returns for our members’ pensions depends on a stable climate. As a powerful lever for value creation, risk management, and improving business and industry practices, stewardship – also known as “active ownership” by investors and asset owners – is central to achieving our ambitious commitments.

Launched today, our Climate Stewardship Plan sets out how UPP engages with portfolio companies and market actors – whether through direct dialogue, collaborative efforts with other investors, and proxy voting – to encourage the net-zero transition and sufficient climate-related disclosure. It features targeted and measurable strategies for UPP’s engagement and advocacy efforts, as well as a time-bound action plan to strengthen our proxy voting activities.

“It’s imperative that we use our influence and partnerships to catalyze positive change in both our investment portfolio and in the broader economy,” says Brian Minns, UPP’s Senior Managing Director of Responsible Investing.

“Our Climate Stewardship Plan, which establishes our vision of success and specific goals for our stewardship activity, is an important step in supporting the creation of long-term value through improved investment outcomes for our members.”

Clear expectations for a greater impact

The plan asks banks, high-emitting Canadian companies, and oil companies that have a significant impact on UPP’s carbon footprint to create credible pathways to reduce their emissions and to proactively manage their transition to achieve net-zero GHG emissions by 2050. Practically, this means setting interim and long-term GHG emissions reduction targets aligned the Paris Agreement and that cover the vast majority of material emissions from business operations and from value chains.

“Clear and concerted efforts across our economy are needed to achieve a more sustainable future. Our intention is to work with companies to build credible decarbonization strategies and to transition to net-zero compatible business models,” says Delaney Greig, Director, Investor Stewardship at UPP.

A roadmap rooted in transparency and accountability

Consistent reporting is one way we seek to build trust with our members and partners. We are committed to disclosing our plans and progress to stay accountable, and we expect the companies we invest in to do the same.

While our proxy voting policy includes guidelines that reflect our positions and expectations on topics including climate change, we believe that strengthening our proxy voting activity can enhance our impact.

Our Climate Stewardship Plan outlines a targeted focus on climate performance, or how companies perform against their climate-related targets, in addition to climate-related disclosure. It also describes how we plan to communicate our votes to amplify our voice.
While this Plan helps formalize our stewardship approach on climate, UPP is already making progress on its key climate priorities and is committed to providing updates under our Climate Action Plan.

In December, UPP will launch our Climate Transition Investment Framework, another key deliverable of our Climate Action Plan, to provide further details on how we will evaluate climate-related risks, opportunities, and impacts in our current and prospective investments.

To learn more, please visit:

• UPP’s Climate Stewardship Plan
• UPP’s Climate Action Plan
• UPP’s Investment Beliefs
• UPP’s Responsible Investing Policy