We’re proud to announce our commitment to remove all investment in carbon emissions by 2050.
Our Climate Change Transition Plan (CCTP) maps our commitment to reducing the absolute carbon emissions in our investment portfolio by 33% by 2030 and to be ‘net zero’ by 2050.
We’re the first major Australian superannuation fund to make carbon reduction commitments of this scale. The plan seeks to align our actions and investment portfolio with the goals of the Paris Agreement.
“Our Climate Change Transition Plan is set to be one of the most comprehensive of its kind undertaken by a superannuation fund,” says HESTA CEO Debby Blakey. “It maps out how we’re going to manage climate risk, align our actions to a below-two-degrees world and support the transition to a low-carbon economy.”
A commitment to our members, and the planet
“Climate change presents a financial risk to the HESTA investment portfolio and the world in which our members will retire,” says Debby. “An urgent response is required and the actions within the Climate Change Transition Plan have been thoughtfully and carefully designed to provide an effective and tangible response.
“This is an exciting piece of work that reaffirms our ongoing commitment to leadership in responsible investment. It can help protect and enhance the long-term performance of our members’ investments, while driving meaningful change and contributing to a healthier planet and society,” says Debby.
The CCTP will:
“We are confident the CCTP can position our investment portfolio well into the future to help us achieve our ambitious investment objectives and continue to deliver strong, competitive, long-term returns for HESTA members,” says Debby.
The CCTP will underpin investment decision making across the portfolio and will be informed by ongoing research and developments in investment practice. Progress will be monitored and reported on against our emissions reduction targets each year.
”We know our members in health and community services care deeply about climate change. That’s why we’re committed to sustained, long-term action to transition our investment portfolio for a low-carbon future," says Debby.
We were the first major Australian super fund to place a thermal coal mining restriction across all investment options.
Underpinning the CCTP is our commitment to the critical goals of the United Nations Intergovernmental Panel on Climate Change (IPCC). The IPCC says global emissions need to reach net zero by 2050 to create a reasonable chance of limiting global warming to 1.5°C above pre-industrial levels.
“If efforts to improve the current trajectory of global warming are not successful, we can expect an increase in the severity and frequency of damage from the physical impacts of climate change,” Debby says. “There is no doubt that the social, environmental and economic cost of inaction is going to be far greater than the cost of responding to climate change.”