Australia's HESTA wants to become net zero fund by 2050

Australian industry superannuation fund HESTA today announced a Climate Change Transition Plan (CCTP) that includes commitments to cut the absolute carbon emissions in its investment portfolio by a third by 2030 and reach the net zero point by 2050.

The super fund, which manages some AUD 52 billion (USD 35.8bn/EUR 31.9bn) in assets, said in a statement it wants to effectively align its actions and investment portfolio with the objectives set in the Paris Agreement.

As part of the CCTP, HESTA plans to establish carbon reduction targets for its investment portfolio to manage key financial risks and, at the same time, pursue investments in low-carbon opportunities. The fund will also engage with material holdings and managers to address medium-term transition risks and opportunities.

HESTA intends to monitor and report progress against its emissions reduction goals on an annual basis. It pointed out that it was the first major Aussie super fund to restrict thermal coal mining across all investment options. Recently, it extended that restriction.

(AUD 1.0 = USD 0.688/EUR 0.613)

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