program & governance briefing · partnerships: • co-managed and led by taf and the ity’s...
TRANSCRIPT
Program & Governance Briefing
September 2015
RE:TA5.10
TAF’s Mission
TAF invests in urban solutions to reduce greenhouse gas emissions and air pollution.
TAF’s Strategic Directions (2015-2020)
Seven strategic directions guide TAF’s grantmaking priorities, investment
strategy and communications initiatives
as we strive for GHG reductions of
30% by 2020
80% by 2050
KEEP EYES ON THE HORIZON
CREATE THE MAP AND COMPASS
TRAVEL WITH OTHERS
MOBILIZE NEW RESOURCES
SEEK INTEGRATED APPROACHES
KEEP EXPLORING
REGIONAL IF NECESSARY, BUT NOT NECESSARILY REGIONAL
TAF’s Strategic Directions (2015-2020)
TAF’s Focus
GHG reduction in:• Buildings• Transportation• Waste
How we work:
• listen to and support local communities (community grants);
• collaborate with a broad range of stakeholders;
• finance entrepreneurs, developers, property owners
• develop and de-risk financing to mobilize public and private capital;
• de-risk low-carbon technologies;
• advance game-changing policies;
• knowledge-sharing
TAF’s Resources: Money
$23 million endowment provided by City of Toronto in 1991.
Investment returns cover most operating expenses -- zero from City’s operating budget.
External funding from governments, foundations – over $5M raised to date
TAF’s Resources: Partners
TAF’s Resources: Volunteers
• Governing Board
• Two Statutory Committees: Grants & Programs, Investment
• Specialized expertise from project partners.
• Pro bono professional services
• Graduate students
• TAF ‘alumni’
TAF’s Resources: Staff
Key Initiatives: TowerWise
Objective: improve the energy efficiency of large buildings via adoption of technologies, policies and financing strategies that accelerate retrofits.
TWEED – 10 demonstration projects
Toronto Green Standard – new construction
Energy Reporting & Benchmarking requirement
Building Value – leveraging Toronto’s leadership
Projects:
Key Initiatives: FleetWise/EV300
Objective: public & private fleets incorporate 300+ electric vehicles.
Results:
• Convened stakeholders in early-days of EVs, including test-drives!
• Business case analysis tool based on real data
• Helped secure provincial subsidy for fleets
• Developed vehicle procurement guidance.
This objective mainstreamed by 2011, with commercial production.
Key Initiatives: Move the GTHA
Objective: secure required public investment in transit and active transportation in the Greater Toronto and Hamilton Area.
Partnerships: collaboration of diverse organizations including Evergreen CityWorks, CivicAction, Pembina Institute, Toronto and Region Board of Trade and 8 others.
Key Initiatives: TransformTO
Partnerships:
• Co-managed and led by TAF and the City’s Environment & Energy Division, in partnership with Toronto Public Health.
• Engage residents, businesses, community leaders, academia, and others in development, evaluation and strategies for taking action.
Objective: using long-range modelling and community stakeholders, engage Torontonians in co-creating Toronto’s pathway to become a low carbon city by 2050
Key Initiatives: Mobilize Financial Capital
2. Efficiency Capital Corp. (ECC)
• TAF incubated this new company that will scale up investment in retrofits using the ESPA.
3. Other innovative financing strategies
• Property-assessed financing – being piloted in Toronto
• Standardized Protocols for retrofit financing requests – grant to MaRS Advanced Energy Centre to explore ‘Canadianizing’ the US Investor Confidence Project.
Objective: Significantly increase public and private capital available for market-transforming greenhouse gas (GHG) reduction initiatives.
1. Energy Savings Performance Agreement
• TAF’s ESPA is a non-debt, insured financial product designed to address key barriers to advancing multi-measure retrofits: lack of confidence in savings/performance and challenges accessing capital.
Impact Investing
Impact investing = investing in keeping with TAF’s mandate, seeking a triple ROI:
Risk-adjusted financial return
Environmental results (GHG reduction)
To demonstrate & de-risk investment opportunities, to mobilize capital for low-carbon solutions
With almost 80% of TAF’s endowment invested for impact,
TAF is a pioneer and leader in this space.
Impact Investing
Statement of Investment Objectives & Principles (SIOP) • Developed by Investment Committee, approved by
Council• Sets out requirement for prudent investing• Establishes investment beliefs
Asset Class Max
(%)
Min
(%)
Fixed Income 100 20
Public Equities 55 0
Direct
Investments
60 0
Private Equities 5 0
• Establishes min/max for each asset class.
• Currently in transition from SIOP 2010 (request to Council in October to adjust asset mix
Impact Investing
• Direct Investments: energy efficiency retrofits, energy efficiency products and services, renewable energy, and other products/technologies with demonstrated GHG reduction potential.
• Marketable Securities: Equities managed by Generation Investment Management and Green Chip Capital; Bonds by TDAM.
• Investment Process:
– Investment Committee of financial experts reviews and recommends all investments
– Board of Directors approves all investments
– Council must approve any transactions exceeding $2 million.
Governance
Toronto Atmospheric Act (2005)• Establishes TAF as a non-share capital
corporation.• Establishes TAF’s legal obligations to
the City of Toronto and Trustee Act.• Delineates the powers of the Board.• Circumscribes terms of the
endowment.• Establishes the Clean Air Partnership as
a charitable entity
By-Law #1• Prescribes TAF’s transaction of business
and other affairs. • Delineates the structure of TAF’s Board
and Committees.
Relationship Framework (2013)• Articulates Council’s objectives
&expectations for TAF; • Positions TAF’s mandate and
operating principles in relation to the City’s strategic objectives.
• Reflects Council’s governance, reporting and accountability requirements.
• Identifies City support to TAF.
Governance
Budget • TAF’s annual Operating budget submitted for review and
approval through Council’s budget process.
Audit• City appoints Auditor• Annual audit examines all assets held by the
Corporation, City Treasurer on TAF’s behalf, and any subsidiaries (ie: CAIT Ventures Inc.)
• Auditor's report must be submitted to the Board later than May 1st of any year.
Questions?