Climate League 2030 participants are required to take at least one new action each year that contributes to reducing Australia’s climate pollution and supports the goal of cutting annual emissions by a further 230 million tonnes from what would otherwise be expected at the end of the decade.

2020

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.

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Cbus

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

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Lendlease Funds Management

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.

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AustralianSuper

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.

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HESTA

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.

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Queensland Investment Corporation

Local Government Super

Pathway to 2030 Science Based Target

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

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Local Government Super

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.

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New Forests

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.

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Pollination

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.

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Aware Super

Impact Investment Group

Investing in emissions reductions

Impact Investment Group (IIG) commits to ensuring that where our investments are made to have a demonstrable environmental impact they will include an identifiable commitment to reduce greenhouse gases in Australia. IIG also commits to an annual measurement process.

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Impact Investment Group

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.

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Pendal Group

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.

 

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Australian Ethical

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.

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Victorian Funds Management Corporation

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.

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AustralianSuper

Aberdeen Standard Investments Australia

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.

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Aberdeen Standard Investments Australia

Local Government Super

Annual ESG reviews across all asset classes

Local Government 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.

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Local Government Super

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

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UniSuper

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+. 

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Aware Super

Aberdeen Standard Investments Australia

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.

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Aberdeen Standard Investments Australia

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.

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Queensland Investment Corporation

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.

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New Forests

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.

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AustralianSuper

Local Government Super

Carbon emissions and ESG risk reporting

Local Government 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.

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Local Government Super

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.

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AustralianSuper

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.

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New Forests

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.

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HESTA

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.

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Aware Super

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; and
  • Including sustainable design principles in major capital works.

Importantly, the framework also aims to encourage IFM’s assets to identify and deploy energy efficiency opportunities and new technologies.

At March 2019, emissions reduction targets have been established for Ausgrid, Melbourne Airport, Brisbane Airport, Northern Territory Airports, Port of Brisbane, NSW Ports and Southern Cross Station, comprising 90% of the Australian infrastructure portfolio value and 98% of the portfolio’s total scope 1 and 2 emissions.

In addition to helping to set targets, IFM has oversight of the annual emissions trajectory for each asset, as well as the timeline for the implementation of energy efficiency/reduction activities. Using this, IFM’s asset management team will monitor and assess progress, engaging with assets to help ensure they remain on track. We will also be monitoring developments in relation to climate change policy and/or technology demand and pricing, in case opportunities arise to bring forward more expensive and/or innovative change options, for example, fuel switching and building on-site renewables.

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IFM Investors