University Pension Plan shows continued climate leadership

On May 29th, 2025, Ontario’s University Pension Plan (UPP) released its annual report. UPP members should be re-assured that their pension manager demonstrated a continuing commitment to investing in a safe climate future – especially when we’ve seen climate backtracking from some financial institutions, including the investment manager for the Canada Pension Plan.

UPP continues to share the top spot on Shift’s annual Canadian Pension Climate Report Card for good reason. UPP is perfectly positioned to continue to lead by example: now’s the time for your pension manager to announce that it will be the first of Canada’s large pension funds to end all investments in oil, gas and pipelines.

Here are some of the key climate and energy updates from UPP’s annual report:

• UPP re-affirmed its commitment to net-zero emissions by 2040 or sooner, which it says are grounded in the goals of the Paris Agreement and “based on scientific imperatives to reduce greenhouse gases, our investment beliefs, feedback from UPP’s members, and our role as an investor to support the transition to a resilient, net-zero world.”



• UPP also re-affirmed its commitment to “delivering secure and stable pension benefits for our members today and tomorrow, and investing in a healthy and resilient world for our members to retire into.”

• The UPP portfolio’s emissions intensity has declined 59% below its 2021 baseline, far exceeding UPP’s 2025 target of 16.5% and nearly achieving its 2030 target of 60%. UPP made new commitments to climate solutions investments in 2024, with $650 million in new commitments made since 2023. This puts UPP well on its way to its 2030 goal of $1.2 billion.

• In her message to members, UPP CEO Barbara Zvan said UPP is “directing capital toward competitive assets that contribute to climate risk mitigation and/or adaptation, and away from sectors with higher greenhouse gas emissions intensity and lower long-term competitiveness.”

• UPP’s CIO highlighted how “strong demand for renewable energy in 2024 reinforced UPP’s commitment to climate solutions,” noting that “global support for renewables remains strong, particularly in Europe and Asia.”

• More than other Canadian pension funds, UPP is using its shareholder power to push companies to take stronger climate action. In 2024, UPP voted against directors at 9.8% of public companies in its portfolio due to inadequate board oversight of climate risk matters or insufficient climate action in high-impact sectors. According to a survey of key climate-related shareholder proposals at fossil fuel companies, banks, insurers and other large companies in 2024, UPP voted for 100% of the proposals.

• UPP continues to stand out among Canadian pension funds for its vocal, consistent and public support for stronger climate action from governments and regulators. This spring, UPP CEO Barbara Zvan helped launch Business Future Pathways to empower Canadian companies to develop and report credible climate transition plans, and spearheaded a letter from Women Leading on Climate that called on Canadian financial regulators to deliver stronger mandatory climate risk disclosure rules.

• UPP re-affirmed its commitment to taking action to support reconciliation with Indigenous Peoples and honouring the Truth and Reconciliation Commission’s Call to Action.

Finally, UPP’s fossil fuel investments continued to decline. As of December 31, 2024, UPP held between $30 million and $65 million in oil and gas producers and gas utilities, down from between $100 million and $235 million the previous year. UPP’s public equity fossil fuel investments now represent less than 0.05% of its portfolio. UPP already excludes most investments in coal.

UPP’s 2024 annual report re-iterated its process to review “the information gained through (its) initial engagements with 11 oil and gas companies and refine (its) position regarding these companies as appropriate.” With wildfires covering Ontario’s skies with smoke while oil and gas companies push to expand production, build new pipelines and dismantle Canada’s climate policies, the question arises: what more does UPP need to review? Fossil fuels don’t belong in the portfolio of a pension fund that’s truly committed to a climate safe future. 

Special mention: UPP and reconciliation
UPP’s annual report also notes progress toward the fund’s Equity, Diversity, Inclusion, and Reconciliation (EDI & Reconciliation) three-year roadmap. 83% of UPP employees participated in reconciliation-focused learning sessions on topics including Indigenous history, impacts of colonization, and Indigenous cultural competency.  94% of UPP’s employees reported believing that UPP is committed to taking action to support reconciliation with Indigenous Peoples. UPP is one of just two of Canada’s largest pension funds with proxy voting guidelines that specifically cite the United Nations Declaration on the Rights of Indigenous Peoples.

Want to do more to phase out UPP’s fossil fuel investments at your university and other UPP member organizations? Join our ShiftUPP organizing group.