UPP publishes Climate Transition Investment Framework, introduces a climate solutions investment target

More information is now available about UPP’s Climate Transition Investment Framework (the “Framework”), which describes how we systematically evaluate the transition alignment and readiness of our current portfolio and new investment opportunities. In addition, UPP will actively grow our climate solutions investments with a target to commit $1.2 billion by 2030 to help catalyze the transition to a resilient, net-zero world. Both initiatives deliver on key commitments from our Climate Action Plan, which is grounded in science, supportive of international agreements like the Paris Agreement , and reflective of UPP’s fiduciary duty.

“Our Climate Transition Investment Framework builds on our approach to managing risk in our current and potential investments, while our climate solutions investment target will help us capitalize on investment opportunities that can enhance our ability to create value for our members,” says Brian Minns, UPP’s Senior Managing Director of Responsible Investing.

“Evolving our approach in both of these areas helps us to continue reducing our exposure to unmitigated climate risk, capturing opportunities in the low-carbon transition, and earning sustainable, long-term returns.”

A tool for systematic climate-related risk identification, assessment and management

The Framework is a tool in UPP’s toolkit to evaluate our portfolio’s net-zero alignment. It includes information about how we monitor climate transition management practices across the existing portfolio and defines investment thresholds for new funds, co-investments, and direct investments that aim to help us avoid exposure to unmitigated climate transition risk. The Framework also provides a roadmap for how UPP expects industry practices to evolve.

“This resource clarifies our expectations for companies and funds about climate-related progress and disclosure while acknowledging that they may be at different points in their net-zero journeys,” says Leah Young, Manager, Sustainability and Responsible Investing at UPP.

“We are committed to working collaboratively with our external investment managers and partners to manage investment risks like climate change and to improve industry practices over time.”

Capitalizing on climate solutions

The ongoing transition to a low-carbon economy requires significant amounts of capital, which presents opportunities for investors. To capitalize on these opportunities, UPP is committing at least $1.2 billion to climate solutions by 2030. Climate solutions are companies and technologies that can help mitigate the effects of climate change and adapt to a changing climate.

Our target will include new commitments to private market funds, co-investments, and direct investments, as well as net-new climate solutions in public market or fixed income fund commitments. Additional information about how UPP defines climate solutions assets and funds is provided in the Climate Transition Investment Framework. UPP is committed to providing updates on our progress against this target under our Climate Action Plan on an annual basis.

Learn more about our approach to climate change:

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