Responsible investing
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 50 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#
45
of our 50 largest Australian investments have Paris-aligned operational targets.
100%
of our wholly owned direct property portfolio is carbon neutral.2
$14b
invested across three sustainable and environmental branded options.3
252
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 ESG risks and opportunities into our investment decisions
Some examples are:
- excluding companies with reported revenues greater than 10% deriving from the exploration and/or production of thermal coal.4
- incorporating a shadow carbon price when analysing our 50 largest Australian investments5 and 50 largest international listed equities.
- setting a carbon neutral emissions target for wholly owned direct property and a net zero emissions target for direct infrastructure.
2. We engage with our 50 largest Australian investments on their net zero goals
As a large investor, we engage with our major investments, and we vote our shares at company meetings. Part of our engagement may include providing feedback on a company’s decarbonisation pathway and/or encouraging credible climate action plans.
3. We give members the choice of three sustainable and environmental branded investment options 3
- In addition to our standard investment options, we offer two sustainable branded investment options that limit exposure to certain industries including companies involved in the exploration and/or production of fossil fuels. See the How we invest your money booklet for more information.
- Our Global Environmental Opportunities option invests in companies that seek to address environmental issues and opportunities. See the How we invest your money booklet for more information.
Articles
Many of our members are keen to know about the kinds of activities that we undertake when it comes to environmental, social and governance (ESG) considerations. These are important and form part of our investment approach.
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 having a net zero emissions investment portfolio by 2050 in line with the Paris Agreement.
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Things you need to know
1 Please consider our How we invest your money IBR for more information on how we invest.
2 Wholly owned property portfolio is certified as carbon-neutral by Climate Active for the 2022-23 financial year.
3 Sustainable and environmental investing means different things to different people. Different products have different investment criteria. Read our sustainable and environmental branded options page and How we invest your money booklet to find out what sustainable and environmental investing means to us and what our investment options invest in.
4 We may retain an interest in companies that have more than 10% of their reported revenues associated with thermal coal exploration and/or 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 exploration and/or production of thermal coal.
5 These include investments in ASX-listed companies and unlisted assets with Australian-based operations.