Investing in a sustainable future
Climate events could pose a significant environmental and financial risk to our investments. That’s why we actively manage climate risks and opportunities across our investment options. We do this by engaging with the boards and management of our largest Australian investments on their climate commitments and reporting. We also invest in companies that are supporting the transition to net zero carbon emissions and those taking steps to thrive in a low carbon world.1
We endorse the Paris Agreement, an international treaty that aims to limit global warming to less than 2°C above pre-industrial levels. As part of this support, we’re committed to the goal of achieving net zero carbon emissions in our investment portfolio by 2050.
Read our full Climate report or download the summary (PDF, 408kB) to learn more about how we drive change.
Our progress so far#
of our 50 largest Australian investments have Paris-aligned operational targets
company engagements in FY23 on climate and environment-related issues
#As at 30 June 2023
Net zero is achieved when the amount of greenhouse gas being generated by an activity is balanced by the managed removal of the same amount of gas over a specific period.
In other words, whatever greenhouse gases are released into the atmosphere are also effectively removed.
How we’re addressing climate change
1. We factor decarbonisation into our investment decisions.
Some examples are:
- excluding companies generating more than 10% of their reported revenue from the extraction and production of thermal coal4
- incorporating a shadow carbon price when analysing our 50 largest Australian investments and 50 largest international listed equities
- setting a carbon neutral emissions target for wholly owned property and a net zero emissions target for direct infrastructure.
2. We actively support the companies in our portfolio towards their net zero goals.
As a large investor, we use our position to engage with the companies we invest in, and we vote on company resolutions. Our engagement is typically strongest with companies in our internally managed Australian portfolios.
3. We give members the choice of three sustainable and environmental-branded investment options.
- In addition to our standard investment options, we offer two sustainable-branded investment options that limit exposure to certain companies involved in the production, generation or transmission of fossil fuels.
- Our Global Environmental Opportunities option invests in companies that seek to address environmental issues and opportunities.
Delivering great retirement outcomes requires that we play a role in shaping a future worth retiring for –a more sustainable future for people and our planet.
We're pleased to let our members know about our new timber investment in Tasmania's largest hardwood plantation estate, Forico.
In 2023, we continued to progress towards our goal of becoming a net zero emissions fund by 2050 in line with the Paris Agreement.
Things you need to know
1Please consider our How we invest your money IBR for more information on how we invest.
2Wholly owned property portfolio carbon-neutral for the 2021-22 financial year with Climate Active accreditation for 2022-23 in progress.
3 Sustainable and environmental investing mean different things to different people. Visit our Sustainable and environmental options page for more information on what this means to us.
4We may retain an interest in companies that have more than 10% of their reported revenues associated with thermal coal exploration and production but are well progressed in the sale or wind-down of those mines as we consider them to comply with the restriction. As at 30 June 2023, we did not hold any interests in companies that had more than 10% of their reported revenues from the extraction and production of thermal coal.