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LGS gets top global climate index spot
Local Government Super (LGS) has regained its top spot in a global climate index rating for asset owners, according to the index released on Monday by Asset Owners Disclosure Project (AODP).
The index that measured how much asset owners manage climate change risk found that while LGS took the top spot many other Australian funds lagged behind such as Future Fund, REST, Telstra Super, and Super SA.
“It’s encouraging to see that LGS and Australian Super are among the nine global funds with an AAA rating in the index,” The Climate Institute chief executive, John Connor, said.
“But overall the index this year paints a disturbing picture of the inadequate management of climate risks to Australians’ retirement nest eggs.”
Chair of the AODP, John Hewson, said that many Australian and global asset owners are risking either accelerating climate change by investing heavily in carbon-exposed assets, or being caught out by changing technologies and policies.
“Currently the ratio of high carbon to low/zero carbon investments across funds is about 20 to one, that is a 20 to one bet on denial or inaction,” Hewson said.
The index found the top rated funds engaged with divesting of heavily carbon-exposed assets, or deploying hedging strategies. However, the worst performers seemed ignorant of climate risks.
Connor warned these laggards would be left stranded, or made worthless, by cleaner technologies, pollution controls, or changes in consumption.
The Climate Institute pioneered AODP pilots in Australia is now the Australian agent of the global AODP.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
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