Latest actions

ISPT

Carbon Positive by 2025

We’re not just investing in property; we’re building better and more sustainable futures for our Investors, customers and communities.

At ISPT, we recognise our duty to anticipate and manage the impacts of climate change as part of our responsible investment approach. We aim to mitigate the impact on our portfolio and operations through the efficient and effective use of natural resources to drive net positive environmental outcomes. ISPT has developed a carbon neutral pathway  for 2020 – 2025, with a target to be carbon positive by 2025.

The Carbon Neutral Pathway includes the following emissions reduction and offset strategies:

• Operational energy efficiency improvement
• On-site renewable energy investment
• Off-site renewable energy procurement
• Australian and community-based carbon offset investment

New Forests

Climate Neutral Business

New Forests will be climate neutral across our business operations for FY21 by purchasing carbon offsets from high quality projects in 2022.

New Forests

Reducing emissions

New Forests will report the full carbon emissions and removals (Scopes 1-3) inventory for our corporate operations and investment portfolio. We will also publish a public methodology document that outlines our methodology for developing our carbon emissions and removals inventories. These inventories will serve as the basis for corporate operations and fund-level Emissions Reduction Plans (tentatively to be developed in FY23).

HESTA

Investment Manager Engagement on Emissions Reduction

In FY22, HESTA will engage with its external investment managers in all relevant asset classes to advocate for actions that support management of transition risks and reduction of real-world emissions.

The engagement will target the largest emitting assets in each manager’s portfolio and those with inadequate carbon risk management strategies, as identified based upon data and analysis from Climate Action 100+ and the Transition Pathway Initiative.

Queensland Investment Corporation

QIC Global Infrastructures sets Net Zero Emissions target by 2040

In November 2021, QIC Global Infrastructure formalised its net zero emissions commitment for the two pooled funds it manages on behalf of its clients, representing over AUD $5bn of capital¹ – the QIC Global Infrastructure Fund (QGIF) and the QIC Infrastructure Portfolio (QIP). Our commitment incorporates three dimensions:

1. At least a 50% reduction in Scope 1 and 2 carbon emissions by 2030²
2. Net Zero Emissions (NZE) for Scope 1 and 2 across both portfolios by 2040
3. Active contribution to our assets’ broader industry net zero ambitions (e.g. Scope 3).

Pendal Group

Carbon neutral across our business operations

Pendal aims to be carbon neutral across our business operations and to achieve Climate Active Certification – this includes developing and implementing a program to reduce emissions where we can, with offsets only used as a last resort.

Pendal Group

Climate Action 100+ engagement

Regnan, a wholly owned subsidiary of Pendal Group, also continues to support the involvement of its clients in CA100+ as well as running a number of collaborative thematic engagements on climate-related risks. This includes engagement with specific companies on their own opportunities to reduce emissions as well as their potential contributions in reducing emissions elsewhere within their value chain and the system as a whole

Pendal Group

Corporate Engagement program on Climate Change

Pendal actively engages with portfolio companies both directly and in collaboration with other industry actors. This action builds on Pendal’s existing commitment to Climate Action 100+ (CA100+). Pendal joined CA100+ in 2018 and is part of the investor groups engaging Santos to reduce emissions across their value chain, consistent with the Paris Agreement goal of limiting global warming to well below 2°C. Pendal Group is also part of the CA100+ Oil & Gas Working Group that provides additional support to sector-related engagement, so investors have informed company engagements with oil and gas companies to meet the initiative goals.

Pendal Group

Develop a Group-level Net Zero ambition and decarbonisation strategy

Develop a Group-level Net Zero ambition and decarbonisation strategy that aligns our FUM with the objectives of the Paris Agreement. This strategy will be part of our broader Climate Change Action Plan

abrdn

Reducing carbon intensity of the assets we invest in

We are committed to reducing the carbon intensity of the assets we invest in by 50% by 2030 vs a 2019 baseline.

abrdn

Engaging with highest financed emitters

We are committed to voting and engaging with our investee companies to drive change and transition our real assets. We will engage with our highest financed emitters across equity and credit holdings seeking transparency on progress against clear transition milestones assessed against relevant standard such as the Climate Action 100+ net zero benchmark. We will divest from these companies where, after two years, we consider insufficient progress has been made against the transition milestones set, unless it is not in line with the mandate.

abrdn

Providing net zero solutions

We are committed to increasing the proportion of assets flowing into our net zero directed investing solutions. Around 30% of our AUM is currently expected to be managed in line with net zero 2050. We aim to increase this by continuing to develop net zero solutions across all asset classes, actively engaging with our clients as well as shifting the abrdn fund range to support net zero goals – starting with a review of the carbon targets within our Article 8 and 9 funds.

IFM Investors

Seeking real world emissions reduction

IFM’s Climate Change Strategy underpins our commitment to net zero by 2050. We are currently working on a number of initiatives including making enhancements to corporate level governance and processes, reflecting recent changes to best practice, and working with each asset class to:

• enhance emissions baselines and improving data quality
• enhance due diligence processes and climate risk assessment frameworks
• confirm interim 2030 emissions reduction targets

For FY22 we are committed to supporting Australian asset owners to meet their decarbonisation goals and objectives by:

• Reviewing and extending our listed company engagement strategy and escalation process
• Developing and offering a low carbon or transition focused fund or strategy
• Working to increase the proportion of energy from renewable sources used by the Australian assets in our unlisted portfolios.

TelstraSuper

Continuing to Implement TelstraSuper's Climate Change Action Plan

In March 2021, TelstraSuper released its Five-Pillar Climate Change Plan, which includes 25 actions to be taken across our portfolios and operations. As part of this we have established the following goals to:

• Achieve net zero greenhouse gas emissions by 2050, aiming for a 45 per cent reduction (from current levels) by 2030;
• Proactively invest in opportunities expected to be net beneficiaries of the transition to a net zero emissions world; and
• Build portfolio resilience to the physical impacts of climate change across asset classes.

In 2022 we will continue to implement this plan.

U Ethical Investors

Science alignment and coverage of targets

In conducting U Ethical’s equity portfolio climate target analysis for 2021, we noticed a poor “effective coverage ratio” among Australian listed companies. In our view, a target is more comprehensive when it focuses on a company’s predominant emissions scope(s) and has a high coverage ratio, which is defined as ‘the proportion of emissions, within the target scope(s), subject to the target.

For our 2022 commitments to Climate League2030, we will be seeking from portfolio companies a commitment to:

• science-based decarbonisation, and
• more appropriate reduction targets coverage.

This means that we will ask companies to increase the percentage of their carbon footprints (across Scope 1, 2 and 3) covered by the companies’ decarbonisation targets. We will also continue to engage with companies that have no climate commitments, particularly in sectors that are usually considered less material such as healthcare, consumer discretionary and consumer services.

Victorian Funds Management Corporation

VFMC Climate Change Position Statement

VFMC believes the impacts and effects of climate change are systemic in nature and pose widespread risks to human and societal wellbeing, ecological health and resilience, and to the wider economy.

VFMC supports the aim of both the COP26 and 2015 Paris Agreement to limit global warming to well below 2 degrees (moving toward 1.5 degrees) to minimise the worst impacts of climate change. In doing so, VFMC makes the following commitments:

• Achieve net zero portfolio greenhouse gas emissions by 2050
• Undertake engagement with investee companies on their decarbonisation efforts and transition pathways
• Support climate positive investments that not only provide strong financial returns, but also help drive the economy’s transition towards net-zero emissions

Aware Super

Increasing capital allocated to climate solutions

Aware Super commits to investing at least $100m in green bonds

Aware Super

Corporate engagement on climate change

Aware Super commits to engaging directly with at least 5 ASX listed companies to improve their climate strategies and commitments to net zero (this could include committing to TCFD aligned reporting; setting targets that are Paris aligned)

Aware Super

Commitment to carbon neutral business operations

Aware Super commits to achieving Climate Active Certification, a voluntary standard administered by the Federal Government, in its own operations. As part of this certification, our commitments include:

• entering a licence agreement confirming our commitment to achieve carbon neutrality
• calculating the greenhouse gas (GHG) emissions generated by Aware Super operations
• developing and implementing an emissions reduction strategy
• offsetting any emissions by buying carbon offsets from activities or projects that remove, reduce or prevent the GHG emissions from being released into the environment
• arranging for independent validation of the carbon neutrality claim
• achieving carbon neutrality
• publishing a summary of our carbon neutral claim
• maintaining the licence agreement for ongoing certification

AustralianSuper

Manage portfolio to Net Zero emissions by 2050

AustralianSuper has made a Board approved commitment to achieve Net Zero carbon emissions in its investment portfolio by 2050. The Fund is implementing a comprehensive Net Zero 2050 transition program across its Investment, Stewardship, Measurement & Disclosure and Collaboration & Advocacy activities to reduce emissions in the portfolio.  A Climate Change Committee and working groups have been established to manage, monitor and measure progress against Net Zero 2050 goal. Actions and progress are regularly reported to the Board and Investment Committee.  Significant work is being undertaken to understand the emissions profile of the portfolio and its future trajectory. We are identifying the largest emitters in our portfolio to focus our stewardship actions to have greater influence over climate change outcomes.  AustralianSuper is undertaking further carbon footprinting analysis to measure and report the carbon intensity of our unlisted assets. We publicly disclose our actions and progress in our TCFD report published on our website. This includes an update of carbon footprinting analysis of our equities and fixed interest portfolios since 2013.  

Australian Ethical

Net zero by 2040 for our private sector investments

Australian Ethical Investment has strengthened its climate targets, with a 2040 net zero target for our private sector investments. We use our investment capital and voice to promote acceleration of current transition paths by encouraging more rapid scaling of climate solutions, increased corporate ambition and green consumer demand, and stronger climate policy.

We are pursuing our target though our investment selection, engagement and advocacy. We won’t invest in oil, gas or coal companies. We invest in renewable energy companies like Contact Energy, which is growing its renewable electricity generation beyond current levels of 80% to further reduce its reliance on gas back-up generation. We invest in plant-based nutrition rather than higher emissions animal agriculture, and engage with supermarkets to help consumers make positive food choices. Our targeted building sector investment and engagement supports the decarbonisation of important building materials.

At the start of FY22 the carbon intensity of our share investments was 77% lower than market benchmark. Our share investment in renewable power generation was proportionately 13 times benchmark.

Lendlease Funds Management

Renewable electricity

In FY23, 30% (or more) of our base building power for all assets under our financial control will be from renewable electricity sources.

UniSuper

Unlisted Decarbonisation Plans

UniSuper will work with its unlisted property and infrastructure investments to put in place Paris aligned decarbonisation strategies for each investment. This commitment will apply to existing and new investments.

Cbus

Scenario Analysis

A narrative scenario analysis will be performed, outlining what a 1.5, 2, and 3-degree future could look like for our investment portfolio and our members, comparing an orderly and disorderly transition.  This work will ensure our investment team has a solid understanding of the various risks and opportunities that exist under different futures and will feed into our decarbonisation strategy and our measurement of risk and opportunity within the portfolio. This work will be crucial in ensuring we are able to move towards meeting our 2030 emission reduction target, and our ultimate net zero 2050 goal.

Active Super

Subject to approval by Active Super’s Board, setting an interim target by 2030.

In July 2021, Active Super completed an Emissions Policy which sets a long term target of net zero emissions by at least 2050. This requires net zero modelling across all asset classes of our fund. Active Super is planning to set an interim target by 2030 once our analysis is fully completed and methodologies finalised. See Active Super’s 2021 Impact Report for progress related to our net zero commitment.

Stockland

2028 Net Zero Carbon Target

In February 2021, Stockland announced its plan to accelerate its net zero carbon commitment to 2028 – two years earlier than previously committed – and extended the commitment across all business activities.

Our 2028 net zero target covers our scope 1 and 2 emissions produced by close to 170 active assets across our Workplace, Logistics, Retail Town Centre and community portfolios.

We will achieve this new target by relying on three key emissions reduction strategies:

• continuing our focus on energy efficient design and operations and the electrification of the portfolio,
• increasing our investment in on- and off-site renewable
  energy, and
• pioneering a number of innovations and technology to reduce our overall carbon footprint.

Our Net Zero Carbon program is supported by a partnership with the Clean Energy Finance Corporation (CEFC), which provided a $75m debt facility.

Once we have met our net zero target, we will seek Climate Active certification.

Allianz

Thermal Coal Phase-out

Allianz is removing thermal coal from proprietary investment and underwriting portfolios.

In 2021, we ceased insuring or investing in infrastructure facilities that derive more than half their revenue from thermal coal.
From 2023, we will no longer provide property & casualty insurance or make proprietary investments in companies that:

• Plan new coal mines, generate more than 25% of revenue from thermal coal mining, or produce more than 10M tons of thermal coal annually.
• Have more than 5000MW of installed coal generation capacity, build new coal-fired power plants, or generate more than 25% of revenue from coal annually.
• Generate more than 25% of revenue through providing services such as maintenance, repair or construction to a coal mine or electricity generation.

Thresholds to tighten progressively, mostly over the period to 2030 with complete phase out by 2040. Exclusion from restrictions may apply to clients with credible decarbonisation plans consistent with the Paris Agreement.

Teachers Mutual Bank Limited

$20 billion of new Certified Responsible Investment products by 2030 that have zero fossil fuel industry investment

Teachers Mutual Bank Ltd is the only Australian bank with all of its retail deposits, mortgages and wholesale funding certified as responsible investment by the Responsible Investment Association Australasia (RIAA). Certification criteria includes zero investment in the fossil fuel industry. 100 per cent of our retail mortgages and deposit products and 100 per cent of all wholesale funding have zero investment in the fossil fuel industry. These products are 97 per cent of all products we sell and are provided  at zero cost to customers. As of December 31, 2020, the total RIAA Certified Responsible Investment products on the balance sheet is $6.4 billion for assets and liabilities.

By 2030, Teachers Mutual aims to grow RIAA Certified Products by $20 billion to reach a total of $27 billion for assets and liabilities.

TelstraSuper

Climate Change Action Plan

In March 2021, TelstraSuper released our Five-Pillar Climate Change Plan, which includes 25 actions to be taken across our portfolios and operations. As part of this we have established the following goals to:

• Achieve net zero greenhouse gas emissions by 2050, aiming for a 45 per cent reduction (from current levels) by 2030;
• Proactively invest in opportunities expected to be net beneficiaries of the transition to a net zero emissions world; and
• Build portfolio resilience to the physical impacts of climate change across asset classes.

U Ethical Investors

Active ownership and engagement with top 10 holdings contributing to carbon exposure.

U Ethical commits to prioritising further engagement with the top 10 portfolio holdings that contribute to the carbon footprint of the Australian Equities Trust – Wholesale and International Equities Trust – Wholesale. We have identified the top holdings contributing to carbon exposure by looking at these funds’ carbon footprint and low carbon transition profiles.

This action builds on U Ethical’s existing commitment to Climate Action 100+. U Ethical does not invest in companies that generate revenue from fossil fuels and for all new investee companies, we evaluate the historical trends in Scope 1 & 2 emissions, the extent of Scope 3 emissions, low carbon transition management capability and overall governance strength.

ISPT

Carbon Neutral Pathway: Better Futures Today

We’re not just investing in property; we’re building better and more sustainable futures for our Investors, customers and communities.

At ISPT, we recognise our duty to anticipate and manage the impacts of climate change as part of our responsible investment approach. We aim to mitigate the impact on our portfolio and operations through the efficient and effective use of natural resources to drive net positive environmental outcomes. ISPT has developed a carbon neutral pathway  for 2020 – 2025, with a target to be carbon positive by 2025.

The Carbon Neutral Pathway includes the following emissions reduction and offset strategies:

• Operational energy efficiency improvement
• On-site renewable energy investment
• Off-site renewable energy procurement
• Australian and community-based carbon offset investment

Cbus

Climate Change Roadmap: Beyond 2020

In August 2020, Cbus released a new Climate Change Position Statement and a new Climate Change Roadmap: Beyond 2020.  In doing so we have set new commitments targeting an ambitious 45% reduction in absolute portfolio emissions by 2030 and a commitment to net zero greenhouse gas emissions by 2050.

Cbus is a large investor in the global economy and can help direct the pathway towards a net zero emissions economy. We can do this by planning for and managing the impacts of the climate transition and to realise investment opportunities to protect and enhance our members investments. Our actions also have a flow on benefit to society and the broader economy in which our members work and retire.

Our new two-year roadmap to 2022 will continue to see climate pathways developed across sectors and asset classes, acknowledging the economy will decarbonise at different rates. We will develop a stranded assets framework, building on the Low Carbon Transition Score we have applied to our quantitative strategies, enabling us to reduce exposure or remove high risk climate holdings from our portfolio.

Lendlease Funds Management

1.5°C-aligned real assets

Our vision is to live in a world warmed by no more than 1.5ºC and to be responsible for creating measured social value on the journey. As a fund manager of real estate assets, Lendlease has always integrated ESG considerations into its portfolio’s operations.

We aim to be net zero carbon in operation for Scope 1 and 2 by 2025, use 100% renewable electricity before 2030 and collaborate with our tenants to transition to renewable electricity by 2040, to achieve absolute zero carbon.

The business is also establishing net zero carbon in operation targets for our funds and portfolios on the following timing:

• 2021: Lendlease International Towers Sydney Trust (LLITST) – achieved (Climate Active)
• 2021: Lendlease One International Towers Sydney Trust (LLOITST) – achieved (Climate Active)
• 2021: Lendlease APPF Industrial
• 2025: Lendlease APPF Commercial
• 2025-30: Lendlease Retail Funds are working through roadmaps, aligned with the goal by 2025

AustralianSuper

Have investments of more than $1 billion in renewable energy projects by the end of 2022

As a large investor of capital, AustralianSuper can lower carbon intensity by investing into lower emissions companies, such as those in the renewable energy sector. AustralianSuper currently invests in a range of renewable energy projects across markets in its infrastructure and equity portfolios. AustralianSuper has committed to have investments of more than $1 billion in renewable energy projects by the end of 2022 and expects this allocation to increase over time.

HESTA

2030 portfolio-wide carbon reduction target

HESTA has committed to reducing the absolute carbon emissions in its investment portfolio by 33% by 2030 and to be net zero by 2050 in line with the goals of the Paris Agreement. Through carbon reduction targets, HESTA seeks to manage key financial risks to its investment portfolio from the transition to a low carbon economy and also support real-world economy change aligned with the Paris goals. A baseline for the 2030 target of a 33% absolute reduction will be set at 30 June 2020 and performance against the target will be regularly assessed along with broader investment objectives. HESTA proposes to monitor and report progress against its emissions reduction targets on an annual basis.

Queensland Investment Corporation

2028 net zero emissions target across QIC’s core retail properties

Queensland Investment Corporation (QIC) Global Real Estate will achieve net zero carbon emissions for core Australian retail assets by 2028. Our proactive and data-driven approach to net zero will deliver real changes to improve the environmental performance of our assets for the long term. QIC Global Real Estate’s proactive approach focuses on maximising efficiencies and smart investments to lower our carbon footprint, and is less reliant on the purchase of green power and carbon offsets.

Active Super

Pathway to 2030 Science Based Target

Through our company engagement program, Active Super requested Woolworths define the pathway to meet a Science Based Target commitment to reduce greenhouse gas emissions by 2030.

New Forests

Climate neutral business

New Forests aims to be climate neutral across our business operations. The company is currently measuring its business and investment greenhouse gas emissions and will offset appropriately by the end of 2020.

Pollination

Designing new opportunities to finance the transition

Pollination has partnered with HSBC Global Asset Management with the ambition to create the world’s largest dedicated natural capital asset management company.

The joint venture intends to establish a series of natural capital funds, investing in a diverse range of activities that preserve, protect and enhance nature over the long-term, and address climate change. Investment themes will include:

• Regenerative and sustainable agriculture
• Sustainable forestry
• Oceans, including sustainable fisheries, coastal restoration and blue carbon
• Biodiversity and wildlife protection and restoration
• Natural capital and real assets that generate carbon credits

These funds will make Australian and global investments, in line with the goal of the Paris Agreement.

Measurable, additional and long-term impact is a fundamental principle of the investment approach. Each investment opportunity will be evaluated against high environmental standards, and needs to demonstrate the potential to deliver positive environmental impacts over its lifetime.

Aware Super

2030 Paris-aligned emissions targets across Aware Super’s equity portfolios

Targeting a minimum 30% reduction in emissions in Aware Super’s listed equities portfolio by 2023, which will also incorporate the introduction of a new low-carbon index.

Pendal Group

Climate Action 100+ engagement

Pendal Group joined Climate Action 100+ (CA100+) in 2018 and is part of the investor groups engaging Santos to reduce emissions across their value chain, consistent with the Paris Agreement goal of limiting global warming to well below 2°C, as well as improving governance and strengthening climate-related disclosures. Pendal Group is also part of the CA100+ Oil & Gas Working Group that provides additional support to sector-related engagement, so investors have informed company engagements with oil and gas companies to meet the initiative goals.

Regnan, a wholly owned subsidiary of Pendal Group, also continues to support the involvement of its clients in CA100+ as well as running a number of collaborative thematic engagements on climate-related risks. This includes engagement with specific companies on their own opportunities to reduce emissions as well as their potential contributions in reducing emissions elsewhere within their value chain and the system as a whole.

Australian Ethical

Net zero portfolio emissions by 2050

Australian Ethical has set a target of net zero emissions by 2050 for our investments. We have committed to set nearer term reduction targets as part of the Science Based Targets initiative (SBTi).

We act to achieve our target in our investment, engagement, advocacy and transparency. For example, we won’t invest in oil, gas or coal companies. We will invest in renewable energy companies Infigen and Contact Energy, which generate a small portion of their revenue from gas. We invest in plant-based protein and nutrition rather than higher emissions animal agriculture.

We measure and report our climate performance. The carbon intensity of our share investments is 75% lower than the market benchmark. Our share investment in renewable power generation is proportionately five times that of the global share market.

Victorian Funds Management Corporation

Climate Action 100+ company engagement with Qantas and BlueScope Steel

VMFC joined the Climate Action 100+ initiative in April 2020 and is now part of the investor groups actively engaging with Qantas and BlueScope Steel to encourage the companies put in place business strategies and targets to reach net-zero emissions by 2050, bolster climate disclosure and improve governance arrangements on climate change.

AustralianSuper

Reducing carbon in equity portfolios

AustralianSuper integrates climate change in its investment policy, process and disclosures and is working to consistently reduce the carbon exposure in its equities portfolios:

• Climate change is identified in the Terms of Reference of AustralianSuper’s Investment Committee, which has responsibility for investment portfolio management on delegation from the Board.
• Our TCFD report publicly enunciates AustralianSuper’s climate change beliefs and support for the Paris Agreement goals and a net zero 2050 economy.
• We integrate climate change considerations at significant points in our investment process including due diligence prior to ownership and then once we own an asset.
• Carbon intensity measurement over the last six years demonstrates a low carbon transition in the equities portfolio is underway. AustralianSuper’s international portfolio is currently 44% less carbon intensive than its benchmark and the domestic portfolio is 17% less carbon intensive.

abrdn

FAIRR Sustainable Proteins collaborative engagement

FAIRR is a global network of investors addressing ESG issues in protein supply chains. ASI is actively involved in collaborative engagements with FAIRR, including with Woolworths Group, where we are seeking to ensure protein diversification and sustainability of supply chains, understanding climate change impacts of meat and dairy products and reducing carbon emissions.

Active Super

Annual ESG reviews across all asset classes

Active Super assesses and monitors ESG risk across our entire portfolio in all asset classes via annual reviews. We assess ESG integration and correlation with investment performance using proprietary methodology which has been developed in house. This method is utilised for onboarding, monitoring and maintenance as well as the removal of fund managers. The results are reported within our Investment Committee Papers. We review ESG integration processes and in this way, we can gauge the level of active engagement, incorporation of issues that pertain to specific sectors and how these will impact stock weightings. This is one part of a comprehensive process which looks at all aspects of Policy, Integration, Innovation, Active Ownership and ESG Quality. Qualitative ESG aspects are converted to quantitative scores and compared against investment performance data.

UniSuper

Portfolio decarbonisation strategy

UniSuper has set portfolio targets to encourage the rapid decarbonising of our economy in line with the aims of the Paris agreement. These include:

• Net zero portfolio emissions by 2050
• Contribute to Australian emission reductions of 45% by 2030
• 100% of portfolio companies have Paris-aligned operational emissions by 2021

Aware Super

Collaborative engagement

Aware Super commits to be an ongoing participant in the Climate Action 100+ initiative, and a lead investor engaging with Santos, Origin and AGL.  We will report on our progress for each company engagement plan – noting that all three have different 2020/2021 key priorities – through Climate Action100+. 

abrdn

Integrating climate change into our investments

ASI has put in place a comprehensive, global approach to integrating climate change considerations into investment decisions, including in our Australian portfolios. This includes:

• Governance oversight: Climate Change Strategy Group and sub-working groups
• Disclosure: TCFD reporting
• Approach: Formalised climate change approach
• Research: External and internal
• Engagement and voting: Collaborative and direct climate-related corporate engagement
• Investment integration: Climate change scenario analysis across listed equities, fixed income and real estate, carbon footprinting
• Collaboration and influence: Active participation in external collaborative initiatives, and engagement with policymakers and peers
• Client solutions: Climate change and low-carbon solutions

We continue to build research-based evidence into our Australian investment processes and product development, and to meet growing client and regulatory development.

Queensland Investment Corporation

Climate Action 100+ company engagement with Qantas and Boral

The Queensland Investment Corporation joined the Climate Action 100+ initiative in June 2020 and we commit to be an ongoing participant. We are a support investor engaging with Qantas and Boral. We will report progress for each company alongside our other active ownership priorities.

New Forests

Collaboration to advance forestry as a climate solution

New Forests believes that corporate and investment in greenhouse gas (GHG) accounting frameworks do not accurately capture the role of carbon removals by forests and carbon storage in durable wood products. Therefore, the company is working to advance GHG forestry accounting via working groups and plans to pilot the Carbon Removals Standard for the GHG Protocol in 2021.

AustralianSuper

Comprehensive climate change engagement

AustralianSuper has identified the most emissions intensive companies in its portfolio and developed an engagement strategy seeking low carbon transition:

• AustralianSuper is a founder, global steering committee member and previous Chair of Climate Action 100+ (CA100+), which advocates for Paris-aligned carbon emissions reductions and improved climate change governance and disclosure in 160 of the world’s largest emitting companies.
• AustralianSuper has an engagement program with internally held ASX-listed companies and unlisted assets for an articulation of net zero business strategies and actionable progress on emissions reduction trajectories. We have developed ownership plans to monitor and manage progress for emissions intensive companies.  We are working to incorporate the CA100+ Net Zero Benchmarking framework into the ownership plans.
• AustralianSuper has and will continue to report on the resulting low carbon transition that is occurring in the portfolio in its TCFD report.

Active Super

Carbon emissions and ESG risk reporting

Active Super (LGS) reports weighted average carbon intensity (expressed in tons CO2e /$M revenue as recommended by TCFD) and carbon emission figures for both the Australian and international portfolios which are compared against benchmark figures. Historical emissions data and  percentage of portfolio invested in clean technology solutions are also reported. In the ESG Risk Report, LGS reports an overall ESG Quality score as well as scores for individual E, S and G pillars for both the Australian and international portfolios. The portfolio’s top performing ESG categories, ESG rating distributions and historical ESG scores are also reported.

AustralianSuper

Partner of the Australian Industry Energy Transitions Initiative

AustralianSuper is a partner of the Australian Industry Energy Transitions Initiative (ETI) to work directly with some of Australia’s largest companies in hard-to-abate sectors to accelerate emissions reductions across their value chains. AustralianSuper is the only institutional investor partner in Australian Industry ETI and this collaboration will enable us to work with industry to develop pathways for emissions reductions across five supply chains: steel, aluminium, liquified natural gas, other metals and chemicals. Collectively, these sectors contribute more than a quarter of Australia’s annual emissions and generate exports worth around $160 billion. The Australian Industry ETI will also provide insights into new opportunities arising from the transition of Australia’s economy, and help to reduce the overall costs of the transition to net zero emissions by encouraging early action. AustralianSuper will integrate learnings from the Australian Industry ETI into its engagement program and benchmarking framework with investee companies.

New Forests

Demonstrate investable pathways to shift the forestry sector from an emissions source to an emissions sink

New Forests aims to work with clients to embed forestry investment into net zero commitments and will strive to report the climate impact of its investment portfolio by 2021. Additionally, New Forests aims to develop a Science-based Target for its forestry investment portfolio in 2022.

HESTA

Climate change engagement plan

HESTA has identified its 12 most emissions intensive ASX holdings based on analysis of its carbon footprint (being AGL, ORG, WPL, STO, BLD, S32, BSL, OSH, RIO, BHP, CTX & QAN). Overarching change objectives have been set by HESTA for each company to decarbonise in line with the Paris goals. The goals of the Climate Action 100+ initiative have then been considered to identify gaps in each company’s approach, including on targets or metrics, scenario analysis aligned to less than 2°C or integration of climate risk into company governance and strategy. To date, company engagement on these objectives has been carried out through the Climate Action 100+ initiative and via our service providers. In 2020 HESTA is extending our collaboration by enlisting external fund managers to join us in seeking change in the companies, given their role in evaluating companies and making investment decisions.

ISPT

100% carbon neutrality

As part of our Carbon Neutral Pathway, ISPT has committed to future generations by taking immediate action on climate change with a 100 per cent carbon neutral achievement. The certification is for the base building operations on all ISPT owned and operated properties, as well as our corporate offices.

In an industry first, ISPT has procured 100 per cent Australian Carbon Credit Offset Units (ACCUs) with a focus on programs connected to Indigenous communities.

This reflects our commitment to act ethically and responsibly, as we believe social and environmental initiatives create long-term investment value for our Investors, customers, communities and teams.

Aware Super

Renewables, clean technology and transition technology investment

Invest up to $AUD150 million in renewables, clean technology and transition technologies across Aware Super’s Infrastructure and Private Equity portfolios in FY2021. Aware Super will monitor how much capital is invested in renewables, clean technology and transition technologies across its infrastructure and private equity portfolios for the financial year ended 30 June 2021.

IFM Investors

Setting emissions reduction targets for individual assets in IFM’s Australian infrastructure portfolio

During FY2019, IFM Investors worked closely with its major Australian infrastructure assets and co-owners to establish emissions reduction targets and pathways through to 2030.

IFM developed a Carbon Emission Reduction and Energy Efficiency Framework, which aims to assist assets to prepare for and transition to a low carbon economy by:

• Establishing an energy and emissions baseline;
• Developing targets for energy and carbon emission reductions and associated emissions reduction initiatives;
• Including sustainable design principles in major capital works; and
• Encourage assets to identify and deploy energy efficiency opportunities and new technologies.

At March 2019, emissions reduction targets have been established for 7 major assets comprising 90% of the Australian infrastructure portfolio value and 98% of the portfolio’s total scope 1 and 2 emissions.

IFM’s asset management team will monitor and assess progress, engaging with assets to help ensure they remain on track.