18 September 2025
We welcome the clarity and certainty provided by today’s release of the 2035 target, supporting businesses and long-term investors to invest in Australia’s shift to a low-carbon future.
While pleasing to see a target that takes into account the Paris Agreement, now is the time for heavy lifting to fully capitalise on opportunities and unlock billions in long-term investment.
This week’s release of the National Climate Risk Assessment highlighted the growing health and community risks arising from climate change and impact on Australians, particularly those living in coastal areas. It also makes it clear the significant cost of inaction to climate adaptation and emissions reduction, with flow on impacts to our economy.
Given this urgent case for action, we believe it’s important to view the lower end of the target range as setting a floor. We see the need to push hard so Australia can reach the top-end of the target, which we consider both ambitious and achievable.
The Net Zero Plan together with the six sector plans released today can identify where faster action may be possible, and help drive investment to transition our economy. This increased action can support a resilient economy, which is in the long-term financial interest of our members.
With $98 billion in funds under management, HESTA stands ready to invest more in Australia’s energy transition and we’ve set a target to have 10% of our portfolio invested in climate solutions by 2030*.
Ends.
* Alignment measured using SDI AOP Taxonomy. We measure progress towards our climate solutions target aligned with SDGs 7, 11.6 and 13 according to the SDI AOP Taxonomy. More information available at https://www.sdi-aop.org/sdi-classification.