At Ontario Teachers’, long-term thinking is more than a business philosophy. It is critical to our ability to pay pensions to 331,000 current and retired teachers, many of whom draw benefits longer than they teach. This long-term focus has compelled us to take a global approach to investing, to expand the asset classes that we invest in, and to embark on an ambitious plan to reach net zero by 2050.

We believe long-term thinking means delivering retirement security for our members by investing to shape a better future for the teachers we serve, the businesses we back, and the world that we live in. As a global investor, we look to achieve this through the active management of the companies that we own.

Investing with patience helps portfolio companies prosper over the long term

Our long-term approach also requires in-house expertise that is both deep and broad. Roughly 80% of our investment activity is managed in-house, and we have built a team of 350 investment professionals with the skills and experience to help our portfolio companies prosper. This internal expertise, combined with our long-term focus, gives us significant influence and enables us to act as responsible custodians of the companies that we invest in.

While some investors focus on cost reduction to deliver immediate growth, we invest with patience and flexibility, to improve the profitability and sustainability of companies over the long term. Cadillac Fairview, a real estate company we have owned for more than 20 years, is a good example. It has expanded beyond North America and is setting new standards for sustainable real estate on a global scale. Busy Bees, a leading childcare provider, is another. Through our partnership over the last eight years, Busy Bees has set the standard for quality childcare services around the world, growing operations from one country to nine while expanding its services to 55,000 children world-wide.

Using influence to reduce carbon intensity, address inequality, and advocate for positive change

As an allocator of capital, a builder of businesses, and an active engaged investor, we believe generating sustainable returns relies on a sustainable foundation. Active management of environmental, social and governance issues is central to our investment philosophy. Our commitment to a greener future prompted us to adopt industry-leading interim net zero targets and a 67% reduction in the carbon intensity of our investment portfolio by 2030. Equally, our commitment to address inequality is reflected through our investments in education, online healthcare and more accessible personal finance. More broadly, we use our significant influence through proxy voting to advocate for positive change across listed corporations.

Fundamentally, as a global investor, we believe it is our responsibility to deliver long-term retirement security for the teachers that we represent by creating a better future through the investments we make and the partners that we work with.