The Alberta Investment Management Corporation (AIMCo) today outlined its approach to climate investing and introduced its Energy Transition Opportunities Pool (ETOP), which is a $1bn fund dedicated to investing in the global energy transition and decarbonization sectors.
“AIMCo has been strategically evaluating climate change risks and opportunities for the last decade and the organization has a strong track record of making investments in the energy transition space,” said Marlene Puffer, Chief Investment Officer, AIMCo, in a news release. “Our climate approach provides important transparency around how we consider climate in our investments and how we will, over the long run, help reduce emissions.”
AIMCo’s climate approach includes the introduction of a climate taxonomy that evaluates and classifies the energy transition readiness and carbon intensity of existing and new investments. This tool helps the investment teams analyze climate risk within client portfolios, as well as measure and improve total portfolio transition readiness.
The initial $1bn in AIMCo’s ETOP represents new capital. The investments made through ETOP will be in addition to AIMCo’s other climate-related investments across asset classes. Many of AIMCo’s clients have allocated funds to the new pool, which will offer them exposure to a variety of energy transition opportunities and themes, including:
- Industrial decarbonization, carbon capture and sequestration
- Sustainable solutions and renewable fuels
- Low-carbon renewable energy production and related technologies
- Electrification, storage and energy efficiency
“We are gratified by our clients’ commitment both to the new pool and to our shared objective of supporting and benefiting from energy transition and decarbonization opportunities,” said Ben Hawkins, Executive Managing Director, Head of Infrastructure & Renewable Resources.
For more information about the climate approach and the ETOP, please click here.
