The Alberta Investment Management Corporation (AIMCo) recently outlined its approach to climate investing and introduced its Energy Transition Opportunities Pool (ETOP), which is a $1 billion fund dedicated to investing in the global energy transition and decarbonization sectors.

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than $158 billion of assets under management. AIMCo invests globally on behalf of pension, endowment, insurance, and government funds in the Province of Alberta. The corporation manages approximately 30 pools of capital on behalf of these clients. With offices in Edmonton, Calgary, Toronto, London, Luxembourg, and Singapore AIMCo’s more than 200 investment professionals have expertise in a range of sectors, geographies, and industries.

“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 at AIMCo. “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.

Energy Transition Opportunities Pool (ETOP)

The initial $1 billion 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
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“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 and head of infrastructure and renewable resources.

For further information about the climate approach and the ETOP, click here.

Featured image of Jasper National Park. Credit: Getty Images 

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