1. About us
  3. Super with impact
  5. Investment excellence with impact
  7. Climate action

climate action

Climate change poses a material, direct and current financial risk that is relevant to HESTA’s management of our members’ retirement savings.

 

 

why we do this
 

  

We consider members’ best financial interests are served through a timely, equitable and orderly transition to net zero emissions by 2050 in order to minimise the systemic risks of climate change. This requires transition of our economy towards alignment with the Paris Agreement.

HESTA has an important role to play in the transition to a low-carbon economy. And we believe this creates important investment opportunities that will help deliver long-term value for HESTA members.

 

 

 

how we do this
 

  

We have captured our actions in our Climate change statement:

Climate change statement (pdf) 

To help guide our ongoing commitments, we've developed our Climate Change Transition Plan.

 

 

 

 

climate change transition plan

 

To help guide our ongoing commitments, we've developed our Climate Change Transition Plan, which outlines our strategy to: 

  • achieve a 50% reduction in normalised (intensity based) portfolio scope 1 and 2 emissions by 2030, below the 2020 baseline
  • achieve net zero portfolio carbon emissions by 2050 
  • pursue opportunities and mitigate risks as part of the transition to a low carbon world.

We consider climate change risks and opportunities in a number of ways: 
 

 

As a large global investor, with investments across a range of geographic regions, economies and asset classes, HESTA cannot diversify away from climate-related impacts. 

Because climate change has the potential to impact investment risks and returns, we consider it alongside traditional financial and business risk factors in making investment decisions. 

We also take a total portfolio approach as we recognise the impact of climate change can present in many ways. In order to mitigate climate risk and capture climate-related opportunities, we need to achieve change in the real economy. In response, we have developed the following Climate Change Transition Plan to guide our actions.

 

 

 

 

our progress towards net zero 

 

We've been working hard to manage climate-related risks and capitalise on opportunities in our portfolio. You can find out more about the progress we're making in our video. 

 

Voiceover:

Our purpose is to invest in and for people who make our world better.

We bring our purpose to life by supporting members to face the future with confidence, being a gutsy advocate for a fair and healthy community and delivering investment excellence with impact.

That’s Super with impact.

AT HESTA, we use our expertise and influence to deliver strong-long term returns to members, while accelerating our contribution to a more sustainable world.

As responsible investors, we consider how the risk and opportunities of climate change impact our portfolio and the world our members, live work and retire in.

We’ve been working hard to reduce the emissions in our portfolio and the Australian economy, and capitalise on opportunities as we transition to a low carbon economy.

For over two decades we’ve focused on managing climate-related risks.

Our actions include:

  • Launching the Eco Pool investment option, now Sustainable Growth, in 2001;

  • Implementing select restrictions and exclusions on investments in companies involved in thermal coal, such as listed companies deriving 15% or more revenue from the mining of thermal coal;

  • And, we were one of the first major Super funds to announce an emissions reduction target of net zero by 2050 as part of our Climate Change Transition Plan.

 

This was supported by an interim target of 33% reduction in normalised emissions by 2030; which we’ve proudly achieved in 2022, 8 years ahead of schedule.

Yet, we know the world needs greater action on climate.

This has led us to strengthen our interim target to 50% normalised emissions reductions by 2030.

As we transition to a lower carbon world, we believe there are investment opportunities that will help us to deliver long-term value to our members.

We're aiming to have 10% of the portfolio invested in climate solutions, like renewable energy and sustainable property by 2030.

You can find out more about these targets and the progress we’re making towards our Climate Change Transition Plan on our website at hesta.com.au/climate-action

 

 

 

 

 

read our climate report 

 

You can read more about the progress of our Climate Change Transition Plan in our climate report: 'Our path to net zero', which gives regard to the recommendations of the Task Force on Climated-related Financial Disclosures (TCFD).

 




Image of climate change report

 

 

 

 


learn more about super with impact

 

 

Facing the future with confidence

We use our deep understanding of our members to design information, tools and support to make a meaningful impact on their confidence about the future.

Facing the future with confidence >

 

 

Gutsy advocate for a fair and healthy community

We use our collective voice to help address inequities impacting our members and those we see falling behind.

Advocating for change >

 

 

Investment excellence with impact

We use our expertise and influence to deliver strong long-term returns while accelerating our contribution to a more sustainable world.

Investment excellence with impact >

 

 

 

 

 

Super with impact

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