OPTrust has invested in ACT Commodities, a Dutch trading house active in the global environmental commodities market.
The Canadian pension fund invested alongside U.K. private equity firm Three Hills Capital Partners. The deal’s value was more than €60 million ($90 million).
Founded in 2009, ACT specializes in trading energy commodities related to incentive schemes for meeting environmental compliance and goals.
OPTrust President and CEO Hugh O’Reilly said the market ACT focuses on “will grow exponentially with the progressive long-term shift towards clean energy.”
Toronto-based OPTrust oversees more than $20 billion in net assets.
OPTrust Invests in Leading Environmental Commodity Trader
LONDON, Oct. 30, 2018 /CNW/ – OPTrust, one of Canada’s largest defined benefit pension plans, has invested alongside UK-based private equity firm Three Hills Capital Partners collectively over €60.0 million into ACT Commodities. This is a Netherlands based firm that specializes in trading environmental commodities related to incentive schemes focused on reducing the use of fossil fuels and emission of greenhouse gasses.
OPTrust’s investment in ACT Commodities builds on the organization’s extensive investment experience in renewable power and green real estate. As a responsible investor, OPTrust integrates environmental, social and governance (ESG) factors into its investment decision-making processes and ownership practices.
“As a long-term investor, our role is to look far ahead at not only challenges, but also opportunities that could affect our members and their retirement security,” said OPTrust President and CEO Hugh O’Reilly. “The transition to a carbon-neutral economy will be increasingly disruptive, and we believe this market will grow exponentially with the progressive long-term shift towards clean energy.”
“In nine years, we have built the world’s pre-eminent trading house for environmental products and certificates,” said Bram Bastiaansen, co-founder and CEO of ACT Commodities. “With greenhouse gas reduction a target in every major economy, there is an increasing demand for a global market maker to advance clarity, speed and efficiency across geographic regions.”
In June, OPTrust released a Climate Change Action Plan which contains eight areas for action, including building climate risk into OPTrust’s investment approach and pushing for increased disclosure of climate change-related information from portfolio companies. In 2017, OPTrust also became one of the first pension plans to report in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
OPTrust’s Climate Change Action Plan, along with the 2017 Responsible Investing Report are available at optrust.com.
With net assets of over $20 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.
About ACT Commodities
With offices in Amsterdam, New York, and Shanghai, ACT Commodities is active in over 50 geographies and presently serves more than 5,000 active clients, helping companies achieve environmental compliance, meet voluntary environmental goals and trade energy commodities.
For further information: Media Contact: Claire Prashaw, Manager, Public Affairs, OPTrust, 1-416-681-3617, email@example.com