Leading the way on Paris targets

Investments
18 Aug 2021
2 min read

We’ve made significant progress on our commitment to becoming a net-zero emissions fund by 2050, with 40 of our top 50 Australian investments setting targets aligned with the Paris Agreement (up from 34 in 2019-20). A further five have committed to setting targets by the end of 2021.

Writing in the fourth edition of Climate risk and our investments (our annual climate risk report), Chief Investment Officer John Pearce says decarbonising the economy will be one of the most significant investment themes for at least the next decade.

“There is no doubt in my mind that the collective action of large investors like UniSuper has played a significant role in driving that behaviour. We strongly believe that engaging with companies and helping them progress toward these targets represents a more meaningful contribution to achieving the Paris goals than divestment—which effectively transfers fossil fuel exposures.”

The report’s key updates include:

  • 40 of our top 50 Australian investments (up from 34) now have Paris-aligned targets, and another five have committed to setting targets this year.
  • Across our entire portfolio, 66% of investments now have Paris-aligned targets (up from 51% 12 months ago).
  • 0.4% of the fund is exposed to fossil fuel producers, with overall fossil fuel exposure down to 2.55% from 5.05% last year.
  • 26% of our portfolio is, or will be, carbon neutral or net-zero by 2022. This includes our $2.6 billion direct unlisted property portfolio.
  • We’ve achieved carbon neutral status for our own operations.

We’ve achieved this progress by divesting some positions, eliminating holdings in companies that generate more than 10 per cent of revenue from mining thermal coal, and not adding to existing positions as the portfolio has grown.1

And with over $12 billion in funds under management across our sustainable and environmental investment options, we’ve solidified our position as Australia’s largest investor in environmental, social and governance (ESG) themed strategies.


Read the report (PDF, 1.37 MB).

 

1 Learn more about our thermal coal exclusion and its limitations.

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