Climate change poses a material, direct and current financial risk that is relevant to HESTA’s management of our members’ retirement savings.
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.
We have captured our actions in our Climate change statement:
To help guide our ongoing commitments, we've developed our Climate Change Transition Plan.
To help guide our ongoing commitments, we've developed our Climate Change Transition Plan, which outlines our strategy to:
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.
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.
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:
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
HESTA biennially publishes comprehensive reporting on the implementation of its Climate Change Transition Plan, in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
In intervening years, we produce an update which focuses more specifically on HESTA’s progress toward climate targets. This update complements and should be read in conjunction with our comprehensive report for an in-depth look at our approach to managing climate-related risks and opportunities.
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.
We use our expertise and influence to deliver strong long-term returns while accelerating our contribution to a more sustainable world.
* SuperRatings 10 Year Platinum Performance 2014-2024 (MySuper)