Our net-zero goal

Net zero means that the assets in a portfolio, in total, do not contribute to global greenhouse gas emissions

Climate change risk and opportunity

Climate change is the risk and climate action is the opportunity. It is necessary to prepare the plan for a low-carbon future. We will balance risk and return by investing in new climate solutions while meeting pension security goals.

There are two types of risk: physical and transition.

Physical risk of climate change: Rising temperatures, shifting weather patterns and sea level rise can cause storms, fires and droughts. These disasters can physically damage buildings, infrastructure and the environment, and disrupt supply chains.

Transition risk of moving to a low-carbon economy: Policy change, technological advancement, consumer preferences and other factors can make the transition to a low-carbon future expensive. There is potential for severe financial impact on portfolios, including market uncertainty, lower returns on companies that must implement new regulations, and disruption of value to new and existing companies.

The opportunities include investing in sectors and companies that are developing and implementing low-carbon technologies. These include alternative energy, energy efficiency, green buildings, water protection and pollution prevention.