A sustainable path to 2050

Investments
Info for members
14 Sep 2020
3 min read

UniSuper is committed to achieving net zero absolute carbon emissions in our investment portfolio by 2050, in alignment with the Paris Agreement.

As Australia’s fund for the higher education sector, aligning with the Paris Agreement reinforces our long-held commitment to incorporate environmental, social and governance (ESG) factors into all investment decisions.

UniSuper is Australia's largest investor in ESG-themed strategies, with more than $8 billion in funds under management across these options. We have more than a decade of experience in responsible investment and we continue to build on our approach to managing climate risks by:

1. Investing - factoring decarbonisation as a core investment theme in all our portfolios
  • Applying a shadow carbon price to material investments that we expect to hold for the medium to long term
  • Excluding companies that generate greater than 10% of their revenues from thermal coal mining
2. Engaging - working with the companies that we invest in to encourage rapid decarbonisation of their operations and supply chains
  • Discussing emission reduction targets and strategies with 100% of our portfolio* companies at management and board levels
3. Collaborating - working with climate-focussed action groups
  • Member of management committee of Investor Group on Climate Change (IGCC) to drive research, advocacy and engagement with other Australian institutional investors
  • Participating as a lead investor for Climate Action 100+

ClimateWorks, an independent, not-for-profit body, assessing business momentum towards net zero emissions across Australia has just released a report on the superannuation sector. UniSuper was recognised as one of only three super funds to be fully aligned with the goal of net zero emissions by 2050, a key element of the Paris Agreement.

Short and medium-term targets to support our longer-term objectives

In working towards 2050, we've also set short and medium-term targets that support our longer-term objectives:

2021

100% of portfolio1 companies to have Paris-aligned operational commitments by the end of 2021.

2030

Contribute to a 45% reduction in Australia’s emissions.

  • UniSuper will target an absolute reduction in emissions at a portfolio level by 2030 where practical (with net zero unlisted property and infrastructure portfolios by 2030).
  • Allocating capital to companies needed to achieve the ultimate goal of net zero.
2050

At a whole-of-fund and portfolio level, achieve net zero absolute carbon emissions.

  • By this time, UniSuper assumes there will be the necessary breadth of companies and sectors operating at net zero to enable construction of sufficiently diversified portfolios.

 

material, active, in-house Australian investments

 

 

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